Luminex Ltd. IPO To Commence On May 12
Posted 6,May

By Chehan Jayasuriya

In Local News

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The Initial Public Offering (IPO) of Luminex Ltd. is scheduled to commence on the 12th of May 2022.

The IPO, comprising 31,250,000 ordinary shares priced at 8LKR, will raise a total of 250 million LKR. The issue amounts to an 11.52% stake of the company after the IPO. The amount raised through the IPO will enhance the working capital to scale up by consolidating local operations.

Navara Capital Ltd. will serve as the financial advisors and issue managers.

Luminex Ltd. is a market-leading engineering company with over 35 years of experience that has interests in telecom infrastructure engineering and electrical, civil, and water projects. Luminex has completed over 850 projects in the past ten years and is a leading telecom OSP (Outside Plant) construction partner for Sri Lanka Telecom and Dialog Axiata and a construction contractor for public and private entities. Today, the company boasts an island-wide presence with a competent in-house workforce of 570 serving across eight operation centers and 29 project offices.

The company recorded an annual turnover of 2.55 billion LKR for 2020/2021 and an after-tax profit of 295 million LKR. In the first nine months of the financial year 2021/2022, the company recorded a turnover of 2.48 billion LKR and an after-tax profit of 453 million LKR, thus displaying a healthy growth rate.

Luminex Ltd. is a certified construction company with EM1 certification from the Construction Industry Development Authority (CIDA) in the central area of operation and with ISO 9001:2015 certification issued by DET NORSKE VERITAS (DNV).

Luminex Managing Director Ruwan Fernando commented: “We are pleased to list Luminex Ltd. on the Colombo Stock Exchange as part of our strategy to broad-base the ownership and to further enhance our brand equity.  Luminex is positioned strongly in the nation’s engineering sector and is geared to expand its operations beyond the shores of Sri Lanka. 

“Since the offer is already announced, we invite the public to subscribe for shares of Luminex against a backdrop of aggressive expansion in telecom infrastructure and water projects, which are expected to benefit the revenue growth of Luminex favourably.” 

Navara Capital COO Jayasankha Alahendra commented: “We believe the issue is attractively priced at 3.18 times PE based on the nine months’ earnings for 31 December 2021. Luminex presents a favourable investment opportunity even in  the currently depressed market conditions. Based on the historical records of the company, one could expect an attractive dividend payout and this would present an excellent investment opportunity in the medium term.”