Prime Lands Residencies to raise Rs.1.95bn via IPO

Prime Lands Group’s 100 percent-owned subsidiary Prime Lands Residencies Ltd (PLR) is gearing to raise up to Rs.1.95 billion via an initial public offering (IPO) on the Colombo Stock Exchange (CSE).

The company plans to issue maximum of 20 percent stake or 100 million ordinary voting shares, with an option to issue further 87.5 million, at an issue price of Rs.10.40. The IPO is expected to be announced officially this month and Acuity Partners acts as the managers to the issue.

Prime is a well-respected brand name in Sri Lanka and Prime Group is the first and only Sri Lankan real estate group to secure an issuer rating of (SL)A- from ICRA Lanka. Prime Lands Residencies was created in 2016 by amalgamating Prime Homes (Pvt.) Ltd to focus on envisioning, creating and selling affordable housing projects in the main cities around the country, under the brand name ‘Prime Residencies’.

Over 40 apartment projects have been initiated by the company so far in Colombo, other main cities and suburbs. Out of which, 35 projects have been fully completed and handed over to residents. Apart from this, five more projects are in the pipeline to be launched in 2021.  For the financial year 2020, the company recorded an after-tax profit of Rs.138 million on a revenue of Rs.5.7 billion. The post-tax profit is forecasted to increase to Rs.975 million this year, with a projected revenue of Rs.7.9 billion.