Alpha Fire Services to become first listed entity representing fire safety equipment industry

• To list 2.76mn shares at a reference price of Rs.11.70 on Empower Board
• Acuity Partners acts as manager, financial advisor and sponsor to Introduction

Alpha Fire Services Limited (AFS) is set to become the first company to be listed on the Colombo Stock Exchange (CSE) representing the fire safety equipment industry, as it gears to list 2.76 million voting shares of the company by way of an Introduction.

The CSE yesterday said it had granted approval in principle for AFS to list 2.76 million ordinary voting shares of the company, at a reference price of Rs.11.70 per share, on the Empower Board. 

Acuity Partners (Private) Limited is acting as the manager, financial advisor and sponsor to the Introduction.
AFS was established in 1989 in Bahrain by the late Frank Ryde and subsequently the Sri Lankan branch of AFS was established in 2003. 

AFS supplies, installs, commissions and maintains fire alarm systems, fire hydrant systems, fire hose reel systems, sprinkler systems, fire flex systems, fire suppression systems, fire doors, kitchen hood fire suppression systems, fire extinguishers and gas lines. In addition, the company also offers designs, provides consultations on installation of fire systems and conducts fire safety training programmes.

Over the period, AFS has built a diverse clientele in various sectors and it has undertaken many projects, including projects from the Urban Development Authority (UDA) as well as multinational companies. Currently, AFS is working on a Rs.152 million worth UDA housing projects for professionals in Pannipitiya and another Rs.117 million worth UDA middle-income housing project in Boralesgamuwa.

The company’s workforce is currently consisted of 50 employees, including a qualified and trained team of engineers and technical staff.  Its state-of-the-art facility, which is located in Pannipitiya, is fully equipped to take on large-scale fire protection, detection and suppression systems. 

Currently, Amtek Engineering (Pvt.) Limited (AEPL) holds a 51 stake in AFS while the balance 49 percent is held by Estate of Late Frank Ryde and Deanna Marise Ryde in equal portions.
The ultimate owners of AEPL, Vijith Perera and Malindra Fernando, indirectly hold a 30.60 percent stake and a 15.30 percent stake in AFS, respectively. 

Further, AFS has entered into a management agreement with its parent AEPL to pay a fixed management fee of Rs.600,000 on a monthly basis as remuneration of the executive directors, commencing December 01, last year.
AFS reported Rs.3.50 million profits on a Rs.184.96 million revenue for FY2020/2021 and Rs.4.09 million profits on a revenue of Rs.154.57 million for the nine months ended on December 31, 2021.

Moving forward, AFS is planning to set up a manufacturing plant for fire doors and cabinets at an estimated cost of Rs.10 million, which is to be sourced through equity funding post listing, subject to the receipt of the relevant regulatory approvals. 

It also plans to develop the workshop and office in newly purchased premises, at an estimated cost of Rs.25 million, which will be part funded by the equity raising post listing and through bank borrowings. 

Further, it plans to establish a subsidiary for mechanical, electrical and plumbing (MEP), closed circuit television (CCTV), solar power and similar products, at an estimated cost of Rs.10 million.

In the long term, AFS expects to establish retail outlets in selected areas, with an estimated investment of Rs.15 million, which could support the company to increase revenue from new markets and improve service efficiencies.