JAT Holdings’ Rs.2.2bn IPO to open on July 20

JAT Holdings’ Rs.2.2 billion Initial Public Offering (IPO) on the Colombo Stock Exchange (CSE) is scheduled to open for investors on July 20, as the firm had secured the listing approval from the CSE.

Sri Lanka’s market leader in the wood coatings sphere is offering 55.81 million ordinary voting shares at Rs.27 per share and 27.09 million ordinary voting shares at Rs.27, offering a 16.24 percent stake in the company.

“The CSE has approved, in-principle, an application submitted by the captioned company, for the listing of its ordinary voting shares by way of a combination of an offer for subscription and an offer for sale on the Main Board of the CSE,” JAT announced this week. 

Meanwhile, the issue prospectus is scheduled to be delivered to member firms/trading members on July 5.
CAL and NDB Investment Bank have been appointed as financial advisors and managers to the offer.

The company intends to set up manufacturing facilities in Bangladesh and Africa in FY22 and FY23, respectively. In addition, with the Rs.433 million IPO funds, JAT plans to enhance its existing R&D facility to a fully-fledged state-of-the-art facility while allocating Rs.257 million to expand the ‘WHITE by JAT’ premium white emulsion paints marketing and development initiative.

Incorporated in 1993, JAT Holdings (Pvt.) Limited is considered to have a commanding market share in the wood coatings sphere in the country. Further, it is also a dominant player in decorative painting and interior living space market segments.