Through the IPO, the company plans to raise Rs. 75mn 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 8th December, 2021 while the prospectus and application forms will be available from 25th November, 2021.
The funds raised through the IPO, will be utilised for expansion, to finance the acquisition of 3 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.
“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.”
The Colombo Property Market Monitor of Jones Lang LaSalle (JLL) indicated positive sentiment and growth in Sri Lanka’s residential property segment in its first and second quarter updates in 2021.
In terms of long-term trends, KPMG’s ‘Vertical Living: Beyond 2020’ report states that factors such as increasing urbanization, in which Sri Lanka lags behind its regional peers, and demand from middle-class professionals, are expected to drive growth.
“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.
“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.”
“As a listed entity, we are bound to have improved corporate governance structures, which will assist the company on long term business sustainably and also protecting the interests of minority shareholders”, Mr. Premachandra further said.
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.
Myland Developments Limited is led and managed by a team of qualified and experienced professionals in real estate and the construction industry.
The company’s Managing Director, Nalin Perera counts 22 years of experience in the sector.
At present, the company predominantly operates in the Western Province, mainly focused in Colombo and Gampaha Districts.
The company’s Board of Directors includes; veteran banker and former head of SME of NDB Bank PLC, W. D. Premachandra – Chairman / Non Executive Independent Director, Nalin Perera – Managing Director, top accounting professional Tharanganee Dissanayake – Executive Director and highly-respected banker and finance professional, Ajith Alahakoon – Non Executive Independent Director.