CL Synergy completes investor forum ahead of IPO
With its highly anticipated Rs. 1.2 billion initial public offering (IPO) set to open on 7 April 2022, CL Synergy hosted a virtual investor forum on 24 March 2022.
Speaking after the conclusion of the virtual investor forum, CL Synergy Managing Director Roshan Silva stated: “We couldn’t be more pleased with the outcome of the session. The turnout was better than expected, and we witnessed keen interest from a wide cross-section of investors, ranging from institutions to individuals. Being a people-driven business, we understand the importance of directly presenting our value proposition to the public. Furthermore, the team and I had a great time answering all of the insightful questions that were raised, and we are sure that our prospective stakeholders were able to obtain a clear and accurate understanding of the company, our business, and our culture, as a result. We take this opportunity to thank all those who attended the Virtual Investor Forum, and we look forward to embarking on the next phase of our growth journey, together with our new stakeholders.”
Managed by Acuity Partners (Pvt.) Ltd., the issue will see a total of 91,500,000 ordinary voting shares of CL Synergy Ltd. offered to the public at a price of Rs. 14.00 per share, and the company seeking a listing on the Main Board of the Colombo Stock Exchange (CSE). CL Synergy Ltd. will be listed amongst Sri Lanka’s vibrant and high-performing logistics sector, a sector that has been declared an essential service by many governments worldwide in the wake of the global pandemic. The value proposition presented to investors by CL Synergy Ltd. is significant, with a forward price-to-earnings ratio (PER) of 4.6 times for FY 2022/23, at the issue price of Rs. 14.00 per share. Furthermore, the company is well positioned for the present economic environment, with 65% of revenue generated in US dollars and 70% of revenue being derived from CL Synergy’s export-oriented clientele. The company also holds significant cash reserves and other assets denominated in US dollars.
With CL Synergy Ltd. seeking to raise Rs. 1.281 billion from the public, the IPO proceeds will be allocated as follows, as laid out in the company’s prospectus: Rs. 320 million towards further strengthening the company’s working capital position, Rs. 212 million towards reducing long-term debt obligations, Rs. 200 million for the expansion of regional presence in buyer and sourcing markets, and Rs. 150 million towards strengthening core digital systems, such as the company’s innovative online rate and booking platform.
Established in 2004, CL Synergy Ltd. is a fully fledged freight forwarding company which provides professional, reliable, and high-quality services. The company prides itself on providing its customers with a personalised atmosphere, flexibility, highly competitive pricing, and efficient servicing. CL Synergy has expanded its freight forwarding activities under a set of associate companies which are also engaged in logistics and freight forwarding, along with other innovative ventures in the pipeline.