Luminex Ltd. has announced its plans for an Initial Public Offering (IPO) of 31,250,000 ordinary shares at Rs. 8 per share, totalling Rs. 250 million, commencing on 12 May 2022. The issue amounts to a 11.52% stake of the company subsequent to the IPO.
The amount of Rs. 250 million raised from the IPO will be utilised to enhance the working capital to scale up by consolidating local operations. Navara Capital Ltd. will serve as the financial advisors and issue managers.
Luminex Ltd. is an engineering company and market leader in telecom infrastructure engineering and also involved in electrical, civil, and water projects as well.
The company has been in operation for well over 35 years and completed over 850 projects in the past 10 years. It is a leading telecom OSP (Outside Plant) construction partner for Sri Lanka Telecom and Dialog Axiata and a construction contractor for public and private entities. The company is empowered by a competent inhouse workforce of 570, across eight operation centres and 29 project offices at present.
Luminex has been certified as EM1 by the Construction Industry Development Authority (CIDA) in the main area of operation and it has also obtained the ISO 9001: 2015 Quality Management Certification awarded by DET NORSKE VERITAS (DNV).
The company recorded an annual turnover of Rs. 2.55 billion for 2020/2021 and an after-tax profit of Rs. 295 million. In the first nine months of FY 2021/22, the company recorded a turnover of Rs. 2.48 billion and after-tax profit of Rs. 453 million, maintaining a healthy growth rate.
Luminex Managing Director Ruwan Fernando commented: “We are pleased to list Luminex Ltd. on the Colombo Stock Exchange as part of our strategy to broad-base the ownership and to further enhance our brand equity. Luminex is positioned strongly in the nation’s engineering sector and is geared to expand its operations beyond the shores of Sri Lanka.
“Since the offer is already announced, we invite the public to subscribe for shares of Luminex against a backdrop of aggressive expansion in telecom infrastructure and water projects, which are expected to benefit the revenue growth of Luminex favourably.”
Navara Capital COO Jayasankha Alahendra commented: “We believe the issue is attractively priced at 3.18 times PE based on the nine months’ earnings for 31 December 2021. Luminex presents a favourable investment opportunity even in the currently depressed market conditions. Based on the historical records of the company, one could expect an attractive dividend payout and this would present an excellent investment opportunity in the medium term.”
Luminex announces upcoming IPO
04 May 2022
Luminex announces upcoming IPO
04 May 2022