With its highly-anticipated 1.2-billion-rupee Initial Public Offering (IPO) set to open on the 7th of April 2022, CL Synergy hosted a Virtual Investor Forum on the 24th of March 2022. The event was attended by a broad spectrum of investors, analysts, and interested members of the public, giving the corporate management team of CL Synergy Limited an opportunity to present their value proposition, engage with prospective stakeholders and provide answers to the various questions raised by participants. The event concluded very successfully and on a highly positive note, leaving prospective stakeholders looking forward to the IPO.
Speaking after the conclusion of the Virtual Investor Forum, Managing Director, Roshan Silva said, “We couldn’t be more pleased with the outcome of the session. The turnout was better than expected, and we witnessed keen interest from a wide cross-section of investors, ranging from institutions to individuals. Being a people-driven business, we understand the importance of directly presenting our value proposition to the public. Furthermore, the team and I had a great time answering all of the insightful questions that were raised, and we are sure that our prospective stakeholders were able to obtain a clear and accurate understanding of the company, our business, and our culture, as a result. We take this opportunity to thank all those who attended the Virtual Investor Forum, and we look forward to embarking on the next phase of our growth journey, together with our new stakeholders.”
The value proposition presented to investors by CL Synergy Limited is significant, with a forward PER (Price-to-Earnings Ratio) of 4.6x for FY2022/23, at the issue price of LKR 14.00 per share. Furthermore, the Company is well-positioned for the present economic environment, with 65% of revenue generated in US Dollars and 70% of revenue being derived from CL Synergy’s export-oriented clientele. The Company also holds significant cash reserves and other assets denominated in US Dollars.
Managed by Acuity Partners (Private) Limited, the Issue will see a total of 91,500,000 ordinary voting shares of CL Synergy Limited offered to the public at a price of LKR 14.00 per share, and the Company seeking a listing on the Main Board of the Colombo Stock Exchange (CSE). CL Synergy Limited will be listed amongst Sri Lanka’s vibrant and high-performing logistics sector, a sector that has been declared an essential service by many governments worldwide in the wake of the global pandemic. The Company’s Prospectus and IPO Application Form can be downloaded via the Issue’s dedicated microsite, https://ipo.clsynergy.com/
With CL Synergy Limited seeking to raise LKR 1.281 billion from the public, the IPO proceeds will be allocated as follows, as laid out in the Company’s Prospectus: LKR 320 million towards further strengthening the Company’s working capital position, LKR 212 million towards reducing long-term debt obligations, LKR 200 million for the expansion of regional presence in buyer and sourcing markets and LKR 150 million towards strengthening core digital systems, such as the Company’s innovative online rate and booking platform.
Established in 2004, CL Synergy Limited is a fully-fledged freight forwarding company which provides professional, reliable and high-quality services. The company prides itself on providing its customers with a personalized atmosphere, flexibility, highly competitive pricing and efficient servicing. CL Synergy has expanded its freight forwarding activities under a set of Associate companies which are also engaged in Logistics and Freight Forwarding, along with other innovative ventures in the pipeline.