Laugfs Gas to launch IPO

Laugfs Gas Ltd., which is part of Sri Lankas Laugfs Holdings Ltd., will raise Rs2.5 billion (US$22.36 million) in an initial public offering (IPO) to support the company’s expansion plans, said Chairman W.K.H Wegapitiya. The IPO will open on November 4 and close on November 25, unless fully subscribed before that. Wegapitiya said the IPO will finance the company’s liquefied petroleum gas (LPG) business to increase the storage and filling capacity, expand the distribution network and introduce a new range of LPG-related products. Laugfs has a 28% share in Sri Lanka’s LPG market and plans to increase it to 50% in two years. Laugfs also plans to buy a stake in Shell Gas Company when it listed in the Colombo Stock Exchange, according to a local media report. (October 24, 2010)