Softlogic launches the largest IPO

Softlogic Holdings Limited yesterday (June 1) launched what is said to be the largest Initial Public Offering (IPO) the country has seen this year - estimated at Rs. 4.031 billion, according to a filing with the Colombo Stock Exchange earlier this week.

In its CSE filing, Softlogic said it would use proceeds from the offering to reduce the debt incurred on its investments into its various diverse sectors as well as to reduce borrowings taken for increased working capital requirements. The application is made to list Seven Hundred and Seventy Nine Million (779,000,000) Ordinary Voting Shares on the Diri Savi Board of the Colombo Stock Exchange at the offer price of Rupees Twenty Nine (Rs. 29/-) per share. The Official opening of the IPO will be on the 9th of June. The minimum subscription is for 500 shares and thereon in multiples of 100.

With financial acumen, strategic vision, stringent ethical practices and above all, a team of both local and international professionals which power the Group, Softlogic has since inception believed in being the “best in the business” and as such has built strong, sustainable, market-leading positions in all six of the high-growth sectors it operates in. In his address, Softlogic Group’s founder as well as its Chairman & Managing Director, Mr. Ashok Pathirage, who has been relentless in helping the Group achieve spectacular success, stated that - “ours is a “value story”. We are determined and committed to a continuous process of “strategic value creation”. Those investors who were privileged to come in with us 15 months ago will most certainly vouch for this, while we have built and will continue to build strong shareholder value. We have over a short period, made new investments that are extremely strategic, aggressively grown business volumes, and in simple, made every stroke count. The time has come for the Softlogic Group to take the next giant stride forward and today we are delighted to launch the Initial Public Offering of Softlogic Holdings Ltd.”

Mr. Pathirage has leveraged his keen business acumen and visionary leadership to transform Softlogic into a corporate giant who is currently a pinnacle of corporate success and value. The world’s best brands have tied up with Softlogic Holdings in diverse spheres of operation and as such Softlogic Holdings has opened new vistas of growth potential to the people of Sri Lanka by delivering world class products, unmatched service levels and real life experiences that can transform dreams into limitless possibilities. “We have prevailed through tough times, and at Softlogic, our ability to take bold business decisions, to seize business opportunities, to act as a catalyst within key growth sectors and expand operations is a tribute to the dynamism and agility of our Group. This has been the hallmark of our success,” he added. “While we are privileged to have a brand portfolio of this scale and stature it is truly the people behind these brands that I consider the most important assets of our Group. It is they who have passionately worked towards creating this great company and it will be they who would collectively take us to the next phase of growth.”

Spearheading the growth of the Softlogic Group since its inception, the Group’s IT sector overall has been at the forefront of this resurgence as a dynamic player in the industry and authorised distributor of the world’s best information & communication technology (ICT) brands. Dell, CISCO and Molex are some of the key brands in its ICT portfolio. They are also the Authorised Distributor for printers and power protection products (EPSON) and the Exclusive Distributor for NOKIA mobile communications devices in Sri Lanka along with being the representative of world renowned document product manufacturers such as Panasonic and XEROX.

What’s more, enhancing lifestyles with global retail brands, Softlogic has set a new benchmark in the retail sector, catering to the emerging consumer segments seeking quality international brands locally, offering unmatched service standards and unique customer experiences. Softlogic’s Retail Sector holds authorized distributorships for the world’s best brands in the consumer electronics, branded apparel, and furniture subsectors. “We deliver world renowned brands to our customers in Sri Lanka through a number of channels. Our portfolio of consumer electronics brands includes Panasonic, Samsung, Onida, Candy, Cornell and Ignis. Levi’s, Nike, Mango and Giordano are some of the leading brands that comprise our branded apparel subsector while a selection of the world’s best brands, such as SB Furniture, King Koil, and Sheridan, make up our Furniture subsector,” he added.

“We are home to the leading private health care provider in the country with the Asiri Group of hospitals, which comprises Asiri Surgical, Asiri Hospitals Colombo and Matara and the spanking new Central Hospital,” - the Group currently owns 51.61% of Asiri Hospital Holdings - the largest hospital services provider with 601 hospital beds currently and 6.9% of Asiri Surgical Hospitals Ltd.

Driving the Automobile Industry to greater heights, Softlogic Holdings also entered Sri Lanka’s fast growing automobile industry, representing world class top performing automobile brands with the vision to deliver the best possible service levels to the local motoring community. The sector, which comprises of Daihatsu and Ford which is the fourth largest automobile manufacturer in the world, has invested significantly in premium customer service facilities.

“Our financial services proposition is off to an excellent start and complements our consumer strategy very well,” continues Mr. Pathirage, adding that Softlogic Holdings made its foray into the financial services industry by acquiring a majority stake in Capital Reach Holdings, which was subsequently changed to Softlogic Capital Ltd. The sector provides fund based products with primary focus on Retail & SME clients and currently operates 10 branches offering Leasing & Hire Purchase Financing, Fixed Deposits & Savings, Personal Loans, Business & Working Capital Financing and Gold Loans.

He went on to add that their entry to the Travel and Leisure sector too will gather steady upward momentum in the months ahead, with the Softlogic Group partnering with Movenpick, one of the world’s leading hotel chains, to build a 225 room 5-star city hotel in Colombo, whilst also acquiring the iconic Ceysands Hotel property in Bentota. These strategic moves have placed the Group in an ideal position to reap the benefits of the tourism boom.

“I am indeed excited and confident,” he said about the upcoming IPO, noting that the current timing was perfect with the post-war resurgence in the country and the economy, along with a highly active stock market. “As the country’s economy surges ahead, we believe that we possess a diversified portfolio of businesses that stand ready to profit from opportunities created by the “Sri Lankan miracle”. It is with utmost confidence that I state that the Softlogic Group is indeed one of the most exciting, diversified, investor-friendly conglomerates in the country - most certainly in the “Platinum” league - and therefore, this IPO of Softlogic Holdings is an investment opportunity not to be missed. The Softlogic IPO is your platinum opportunity to join the Softlogic winning team and our family, and I sincerely do hope that you will join in, celebrate and share in our continuous growth story.”