Hemas Power raises over $5m in oversubscribed IPO

7 October 2009

Sri Lankan power and hydro provider Hemas Power announced that its IPO of 31,300,000 ordinary shares was oversubscribed by around 3.7 times on its first day. The company received 8,552 applications at a book price of 20 rupees ($0.17) a share, totalling LKR2.3bn ($20m). Total capital raised was over $5m, with investors including local and foreign funds, and local and foreign retail investors.

The funding is to be used to expand the Hemas’ renewable energy holdings according to the firm, which is eyeing a variety of renewable energy acquisitions and planning the construction of a hydro power plant.

Hemas Power managing director Kishan Nanayakkara said, ‘The oversubscription of this first ever corporate IPO in post-war Sri Lanka reflects customer confidence in Hemas Power and Hemas Group as well as expectations for better economic performances in the macro front. As initially planned, the funds will be used for the construction of a Hydro Power Plant and the acquisition and development of other renewable energy projects.’

Hemas Power is the energy division of Colombo stock exchange-listed Sri Lankan conglomerate Hemas Holdings, which reported revenues of $135m and profits of $6m in 2008-2009. Also dealing in traditional power sources, Hemas took its first step into the renewables sector in 2007 when it developed a 2MW mini hydropower project built on one of the main tributaries of the Mahaweli River. The plant was connected to the national grid in late 2008, and the company has now commenced development of a second 2.4MW hydro project, expected to commence operations in mid 2011.

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Tags: hydropower

This story was published on Wednesday, October 7th, 2009 at 5:00 pm and is filed under Asia, companies, water. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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