In an interview conducted with Daily FT, Nalin Perera, the founder and managing director of Myland Developments, revealed his company’s plan to list in the Diri Savi Board of the Colombo Stock Exchange and offer a 17% stake in the company via an Initial Public Offering (IPO).
The company was incorporated as a limited liability company in 2017 with the vision of supporting every Sri Lankan buy a plot of land & build their dream home. As an emerging player in the real estate sector, Myland Developments hopes to capitalize on the fast-growing demand for affordable real estate in the Colombo suburbs and Gampaha District. Since 2017, the company has completed over 20 projects.
In his interview, Nalin Perera, a man who has over 22 years of experience in the construction and real estate industry, revealed that there were several reasons for choosing to list in the CSE. According to the founder, the company is currently a Small and Medium Enterprise (SME) and is currently in its growth stage. Therefore, due to high interest rates, the company wanted to diversify its funding options instead of relying solely on the bank.
Secondly, the shareholders wanted to understand the company’s market value, and listing in a secondary market presents the perfect opportunity. The company hopes to use the listing as an opportunity to increase brand visibility and instill greater confidence in its customers.
The company has managed to record significant growth since its incorporation and has overcome many of the obstacles that plagued the industry in recent times. In FY17, the company mainly focused on identifying suitable land to create its land bank and made its first sale in FY18. The total revenue was around LKR 66 million. The company saw a 144% annual growth in FY19 with revenue around LKR 160 million. The recent troubles of the Easter Sunday attacks and Co-vid 19 customer appetite dropped, and Myland Developments only recorded a 38% y-o-y growth in FY21.
However, the company seems to have regained its momentum as it managed to record a revenue of LKR 119 million in the first half of FY 22 alone.
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