Real estate developer, Myland Developments Limited (MDL) on Thursday announced an Initial Public Offering (IPO), via offering a 17.24% 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. 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 in a statement. “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 facilitates and strong positions the company for expansion,” Myland Developments Chairman, W. D. Premachandra said, adding: “The listing is also expected to assist in further amplifying our brand and developing an island-wide 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, in a land with an extent of 254 perches, Divulapitiya in a land extent 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, in which negative sentiments stemming from the ‘Easter Attacks’ adversely impacted the company’s financials. The company has further strengthened its performance in the first six months (1H) of the current 2021/22 financial year, recording revenue of Rs. 119 million, a 381% increase from the corresponding period year-on-year (YoY). The PBT for 1H 2021/22 stood at Rs.38.6 million.