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Monday, June 27, 2011

LOFC to list 2.8 billion shares

The registered finance arm of Japanese Financial giant LOLC group, Lanka Orix Finance Company will list 2.8 billion ordinary voting shares of the company at Colombo Stock exchange by way of an introduction, a filing said.

Yet to be listed in the ‘Diri Savi’ Board of Colombo Bourse, Lanka Orix Finance (LOFC) will be the company with the highest number of issued share capital in the Banking and Finance sector surpassing 826.49 million issued voting share capital of SMB Leasing PLC, and will be the second largest listed company with a higher number of issued share capital after Dialog which has nearly 8 billion voting shares in issue.

Accordingly, the reference price of the share is yet to be informed to the market whilst market sources say that the parent entity of the company LOLC had raised nearly Rs.1.4 billion through a private sell down of 280 million shares or a 10% stake of the company to private investors at Rs.5 per share.

However it is anticipated LOFC will start trading at Rs.5 per share on the ‘Introductory Day’. Meanwhile speaking on the company’s strong growth LOLC Group Managing Director Kapila Jayawardena said that company has a public deposit base of nearly Rs.20 billion to date. The financials of LOLC for 2010 notes that group’s public deposits under management were at Rs.11.76 billion as at 30 June 2010. However, Jayawardena refused to comment about LOFC’s asset base.

LOFC which commenced business operations in 2003 has now spread its reach to establish itself as the leading RFC in the country.

LOFC’s footprint covers a wide network of strategic locations throughout the island allowing the Company to reach a broad base of deposit and lending customers. LOFC already has an expanding business portfolio which includes fixed deposits, savings, leasing, loans among many others, which caters to Individuals, Corporates and SMEs. LOFC is the only RFC in the country with Central Bank of Sri Lanka (CBSL) approval to mobilize foreign currency savings and deposits.

source - www.dailymirror.lk