Chairman Prof Abeyrathna Bandara
LCB Finance (Lanka Credit & Business Finance Ltd) is going public by entering Colombo Stock Market with a Rs. 500 m issue, offering a 15.82% stake, 125 million shares at Rs. 4 each. The price to book value is 1.26 and the financial advisor NDB Investment Bank is promoting the IPO at a 7.7% discount to the upper limit.
Lanka Credit & Business Finance Ltd. currently owns a 84% stake and post IPO it will hold 70.58%.
LCB Finance is listing on the CSE to meet the dual objectives of fulfilling its regulatory core capital requirement and financing.
LCB Finance is a licensed finance company under the supervision and regulation of the Central Bank of Sri Lanka. LCB has eight branches and its assets were valued at Rs. 3.7 billion as at end of FN 2021. lt posted an income of Rs. 461.4 m while pre-tax profit was Rs. 100 m. Total shareholders’ funds amount to Rs. 2.1 billion with a 4.75% return over equity. LCB has a customer base of over 26,000.
CEO and Executive Director said the company recorded a substantial growth during the period 2020/2021 under the current economic background. As at end April 2021 the total capital funds were Rs. 2,175 m, the Capital Adequacy Ratio was 51.78% and total credit portfolio reached Rs. 2.7 b.