LVL Energy Fund’s Rs. 1.2bn IPO oversubscribed on opening day

Biggest IPO issued since beginning of 2015

The Initial Public offering (IPO) issued by LVL Energy Fund Limited closed at 4:30pm yesterday- the opening day- oversubscribed.

The Rs. 1.2 billion IPO was the first offer of that size to be offered on the Colombo Stock Exchange since the beginning of 2015. It is expected to fund LVL's strategic expansion and growth in the renewable energy sector.

Analysts consider this over subscription as a positive signal for the CSE.

A spokesman for the issuance said that they had received Rs. 1.5 billion worth of applications and was counting. "There were more applications coming through the Hatton National Bank and the DFCC Bank", they said."

Of the Rs. 1.2 billion that is to be raised at the IPO, Rs. 720 million (60% of the funds), will be invested in three new hydro power projects; Rs. 255 million in two hydro power plants aggregating to 3.9 MW in Sri Lanka and the balance Rs. 465 million in a 10 MW hydro power plant in Nepal.

Generating electricity and power from renewable energy sources is a key driver for supporting sustainable economic and industrial growth whilst ensuring the health and wellbeing of the public. Having recognized the immense potential of the alternative energy sector , the LVL energy fund has alredy made headway in establishing itself as a key investor in the local industry.

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