LCB Finance goes for IPO

By Hiran H.Senewiratne

Lanka Credit & Business Finance Limited (LCB Finance) will go for a public offering of its shares in the Colombo Stock Exchange through an Initial Public Offering (IPO). The company will go for listing probably on October 25 to raise Rs 500 million, its sources said.

“LCB Finance, which initially began as a grassroot level financial institution, witnessed exponential growth and expansion across the country over the years, its chairman Prof. Abeyratne Bandara said.

Under this IPO the company will issue 1.25 million shares with a share value of Rs 4 to raise Rs 500 million. With the funds it will be improving the balance sheet and also for future expansion plans, he told the Island Financial Review.

Bandara added: “The company has already initiated and partly completed the listing process through NDB Investment Bank. Furthermore, we have already appointed FJ & G de Saram as our Legal Advisors and Sampath Bank PLC as the Banker to the IPO.

“As a financial institute committed to uplift the standards of living of low income earners with a range of micro finance products, it was also recognized as the Emerging Finance Company of the Year 2019.

“LCB was awarded “Fastest Growing Non-Banking Financial Firm in Sri Lanka 2021″ at the Global Economics Awards 2021 in the UK. The customer base of the company comprises farmers, fishermen, vendors, labourers and small business owners, among others, which makes it a truly people’s development financial institution.”

“As at end of the March 31, 2021 Financial Year, LCB Finance’s Core Capital was Rs. 2.16 billion, Profit (PBT) Rs. 100 million, Operational Profit Rs. 122 million, Total Assets Rs. 3,672 million, Capital Adequacy ratio 58%, Credit Portfolio Rs. 2.56 billion, its C.E.O & Executive Director K.G. Leelananda said.

“Over the past 3 years we have made a collective effort to focus on overall betterment of communities. The signature of that trust is deeply ingrained in the business framework of the firm, he said.

“We cater to the needs of individuals across all categories of the economy; the overall logic of operations is strongly inspired by and flavoured with the idea that challenges are best met collectively and that such an approach adds value to individual effort, he added.

He said ICRA Rating [SL] is B+ Stable. The rating Committee of ICRA Lanka Ltd., after due consideration of the rapid development of the company, has revised its rating from [SL]B stable outlook to [SL]+ Stable.