WindForce completes IPO in Sri Lanka

Sri Lankan independent power producer WindForce Limited (CSE:WIND-N-000) on Thursday floated on the Colombo Stock Exchange after an initial public offering (IPO) that raised LKR 3.2 billion (USD 16.5m/EUR 13.6m).

The company sold 202.6 million shares priced at LKR 16 apiece. At the close of trading today, WindForce's shares traded at LKR 18.00, giving the company a market capitalisation of LKR 24.3 billion.

WindForce, founded in 2010, started out with the development of wind farms, but later diversified into solar and small hydropower plants. According to its website, it currently operates 27 power plants with combined capacity of 218 MW in Sri Lanka, Uganda, Pakistan and Ukraine.

Earlier this week, the company announced that it will use part of the proceeds from the IPO to buy a 33% stake in Solar Universe (Pvt) Limited, which holds the right and required approvals to develop a 10-MW ground-mounted solar power farm in Vavunathivu, Sri Lanka. Hienergy Services (Pvt) Ltd and Vidullanka PLC each hold a third of the project.

The solar farm will sell power to local utility CEB under a 20-year contract at a price of LRK 14.41/kWh. WindForce estimates its total investment in the purchase and development at about LRK 1.4 billion.

(LRK 100. 0 = USD 0.515/EUR 0.426)

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