Myland Developments announces IPO

Atarah Capital Partners (manager to issue) Managing Director Rohan Senewiratne, Myland Developments Limited Managing Director Nalin Perera, Atarah Capital Partners (manager to issue) Vice President Investment Banking Chandana Wijesundara, Myland Developments Limited Chairman W.D. Premachandra, Myland Developments Limited Executive Director Iresha Dissanayake and Myland Developments Limited Independent Director Ajith Alahakoon

• To raise Rs.75mn offering of 17.24% stake 
• Offer price of an ordinary voting share set at Rs.12
• Company has successfully completed 23 mega land development projects

Real estate developer Myland Developments Limited (MDL) yesterday announced an initial public offering (IPO), offering a 17.24 percent stake of the company and will be listed on the Diri Savi Board of the Colombo Stock Exchange (CSE). 

Through the IPO, the company plans to raise Rs.75 million via offering 6,250,000 ordinary voting shares, at a price of Rs.12 per share.

The offer is managed by Atarah Capital Partners and will open on December 8, 2021, while the prospectus and application forms will be available from November 25, 2021. 

The funds raised through the IPO will be utilised for expansion, to finance the acquisition of three new lands for development.

“Considering Myland Developments all-around strength, including our proven track record on having successfully completed 23 developed projects, backed by sound historical financials and also considering future business potential, we are confident that this IPO will be highly successful,” 

Myland Developments Founder and Managing Director Nalin Perera said, “Given the recent strong performance in the Sri Lankan property market and increasing demand for land, coupled with the recent performances of the Colombo Stock Exchange, the timing of the IPO is most ideal.”

“Amidst rising interest rates, the funds raised via the IPO facilitate and strongly position the company for expansion,” said Myland Developments Chairman W.D. Premachandra.

“The listing is also expected to assist in further amplifying our brand and developing an islandwide presence, through a portfolio of developments across the country.” 

Since its incorporation in March 2017, the company has completed 23 land development projects up to end-September 2021, where all the land plots developed have been sold successfully. At present, there are three ongoing projects that will generate revenues for the company, which include projects in Dompe, on a land with an extent of 254 perches, Divulapitiya on a land with an extent of 720 perches that will be available for sale prior to the IPO. 

Myland Developments recorded a revenue of Rs.168 million and profit after tax (PAT) of Rs.26 million in the 2020/21 financial year (FY). This was a significant improvement from the Rs.121 million revenue and PAT of Rs.3 million recorded in the previous financial year.

The company has further strengthened its performance in the first six months (1H) of the current 2021/22 FY, recording revenue of Rs.119 million, a 381 percent increase from the corresponding period year-on-year (YoY). The PBT for 1H 2021/22 stood at Rs.38.6 million.

Myland Developments Limited is led and managed by a team of qualified and experienced professionals in real estate and the construction industry. The company’s Managing Director Nalin Perera counts 22 years of experience in the sector. At present, the company predominantly operates in the Western province, mainly focused in the Colombo and Gampaha districts. 

The company’s board of directors include veteran banker and former Head of SME of NDB Bank PLC W.D. Premachandra – Chairman/Non-Executive Independent Director, Nalin Perera – Managing Director, top accounting professional Tharanganee Dissanayake – Executive Director and highly-respected banker and finance professional, Ajith Alahakoon – Non-Executive Independent Director.