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Thursday, July 22, 2010

Another IPO IT firm promises 25% dividend to lure in investors

By Mario Andree

PC House Limited (PCH) announced its Initial Public Offering (IPO) to be the first IT Company in the Colombo Stock Exchange listed on the main board, Director PCH, Mangala Boyagoda said.

The company is offering 57,233,334 ordinary shares on August 5 at Rs. 11 per share. The Issue will raise a total of Rs. 629,566,674 which is 25 percent of the company’s equity capital.

"Share holders will be entitled for a minimum 25 percent dividend which may rise up to 40 percent under favorable circumstances," Chairman PCH, S. H. M Rishan said.

"PCH would be the sole listed IT Company in the CSE upon the successful completion of the IPO," he said.

PCH a, Rs. 3 billion company, now looks forward to enhance its portfolio by adding Business Processing Outsourcing(BPO) and Internet Data Centres IDC).

"The company would be investing Rs. 200 million to develop IDC and Rs. 100 million on the BPO," Rishan said.

The company, which began with a single showroom and two employees in 1997, would use Rs. 150 million to retire some of its debt which totals to Rs. 900 million, which is currently 60 percent of the company’s capital while equity is 40 percent.

"The IT sector hopes to be developed into a US$ one billion industry by 2015 and the government has taken many initiatives in developing the IT sector. Computers have become essential household equipment are more affordable," Rishan said.

"Currently only 10 percent of the Sri Lankan population has access to computers which was only three percent four years ago. By 2015 we expect accessibility will increase to nearly 45 percent,

"PCH needs to prepare itself to cope up with future demand and Rs. 150 million would be invested on expansion, adding five more centres to the existing 28 around the country.

"PCH hopes to play a vital role in economic development, as we understand it, the new era has opened up new opportunities for expansion, both in local and international markets," he said.

The offer closes on August 25.

The directors of PC House: Saheedul Hijiry Mohamed Rishan, Chairman/Chief Executive Officer, Ms. Sithy Sharmila Rishan, Non-Executive Director, Ekanayake Mudiyanselage Mangala Boyagoda, Non-Executive Director, Drayton Sarath Palitha Wikramanayake, Non-Executive Director, Modarage Thilakasiri, Non-Executive Director, Shanti Kumar Nadarajah, Non-Executive Independent Director and Edinadura Kuvera Isuru de Zoysa, Non-Executive Independent Director.

source - www.island.lk