Prime Lands Residencies Limited the condominium property arm of the maestro of real estate artistry in Sri Lanka, Prime Group, recently debuted its Initial Public Offering (IPO) Proposition. Through the past 25 years of the Prime Group journey, this feat is certainly a remarkable milestone for both the company and the real estate industry of Sri Lanka as a whole.
The company has extended an invitation to subscribe for 100,000,000 Ordinary Shares at an Issue Price of LKR 10.40 per Share which is payable in full on application. The company has also facilitated an option to subscribe for a further 87,500,000 Shares in the event of an oversubscription of the initial 100,000,000 shares.
The opening date is currently set for the 11th of May and interested parties are encouraged to forward their applications prior to this. Through this IPO, Prime Lands Residencies Limited seeks to allow the public to have a 10 to 20% percent stake in the company and raise 1.95 billion rupees in funds.
This IPO is expected to ensure that the firm continues to grow from strength to strength, with a commitment to bring the best value to all their stakeholders, ensuring their satisfaction is parallel to the growth of Prime Lands Residencies and the Prime Group. When considering that regulatory policies have been relaxed along with the removal of NBT, it is an ideal time for the real estate market to flourish. Historically low interest rates also translate to real estate becoming more affordable than ever before.
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.
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 luxury housing projects in the main cities around the country, under the brand name ‘Prime Residencies’.