Leading dairy products manufacturer Lucky Lanka Milk Processing Company Limited, based in Southern Sri Lanka, is planning to raise approximately Rs.300 million via an initial public offering (IPO) shortly, Mirror Business reliably learns.
Possibly as the next IPO to hit the bourse, Lucky Lanka plans to issue both voting and non-voting shares. The price of the voting share is likely to be in the range of Rs.5-6 and the non-voting Rs.3-4, Mirror Business learns.
The shares will be listed in the secondary Diri Savi Board of the Colombo Stock Exchange.
The large part of the money raised through the issue is expected to be utilized to settle long and short-term debts and the rest for capacity expansions.
The Corporate Advisory and Capital Market Division of Merchant Bank of Sri Lanka is believed to be acting as the managers and registrars to the issue.
Founded by Lal Keerthi Gunewardena— the present Chairman—with the support of his four sisters, Lucky Lanka today stands as the only yogurt manufacturer with the SLS certification in Sri Lanka.
The business, which began as a household industry in 1991 with a couple of cows, was registered as a limited liability company in 2007 under the name of Lucky Lanka Milk Processing Company Limited.
The company now buys fresh milk from thousands of farmers and produces yoghurt and other dairy products and distributes islandwide under the brand name ‘Lucky’.
The product range comprises of flavoured yoghurts, fresh fruit and drinking yoghurt, pasteurized milk, sterilized milk, UHT milk, flavoured milk and fruit drink bottles. The two most recent product introductions by the company were its chocolate-flavoured yoghurt and milk toffees.
Lucky Lanka has provided direct and indirect employment to over 500 workers and also boasts of the country’s best cold distribution network with 120 refrigerated vehicles.