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Sri Lanka to see first garment factory listing

June 07, 2011 (LBO) - Orient Garments Limited, a unit of Sri Lanka's Finco group of companies will be listed on Colombo Stock Exchange's second board, making it the first apparel maker to go public. The firm will enter the market through a process of 'introduction' where a formal initial offer for subscription is not made to the public but existing shareholders can sell down after the shares are listed. The CSE said the trading date will announced later. The company's website said it had annual revenues of 2.8 billion rupees and had capacity to make 300,000 pieces of garments a month, at five plants. Garments are Sri Lanka's largest industrial export. In 2010 Sri Lanka exported 3.5 billion dollars worth of apparel and textiles mainly to the European Union and the United States. Apparel firms have not sought listings or capital from the public market up to now. Stock valuations have risen sharply following the end of a 30-year war resulting in a flood of new listings. Two textile firms, Kuruwita Textiles, a unit of the Brandix Apparel group, and Hayleys MGT Knitting, are listed.

At one time, two privatized textile firms were listed but they were unable to compete after import duty protection was withdrawn. Most Sri Lankans, especially people with lower income, now dress better as a result.

Orient Garments to be the first listed apparel manufacturer - Reference price Rs. 23 per share
June 28, 2011

Orient Garments Ltds (OGL) 54.9 million ordinary shares will be listed and commence trading on the Colombo Stock Exchange from June 29, 2011. Orient Garments Limited, part of the Finco Group of companies, will be the first apparel manufacturer to be listed on the CSE and will be classified under the manufacturing sector on the Diri Savi Board. A stock exchange filing said the reference price would be Rs. 23 per share.

OGL, having established in 1982 as a specialized outerwear manufacturer for the export market, is today a fully-fledged garment manufacturer with 1,500 direct machine capacity employing over 3,500 personnel. OGL Group comprises of the holding Company and two subsidiaries, Stafford Orient (Pvt) Limited and Priority Garments (Pvt) Limited. The Group currently serves many leading international brands including Next, Tesco, Tommy Hilfiger, Polo Ralph Lauren and Burberry.

OGL Group has posted Rs. 2.8 billion revenue and earned Rs. 125.7millionprofit attributable to shareholders during the financial year 2009/2010. For the eleven month period ended February 28, 2011, the revenue was Rs. 3.3 billion and profit attributable to shareholders was Rs. 98.2 million.Net asset value of the Group as at March 31, 2010 was Rs. 512.3 million which had improved to Rs. 603.7 million by end of February 2011. The Company operations are expected to gather a steady upward momentum with its moves to reinforce its position in its niche market capitalizing on its competitive strengths such as design capabilities, skilled workforce and the level of service. Mr. Harsha De Silva, Managing Director of Navara Capital, which is managing the listing of OGL stated that this was the first instance of an apparel manufacturer obtaining a listing although the sector represents almost half of Sri Lankas export earnings. "We hope that this listing will encourage other players in the industry to share their success with the investing public by listing their shares on the CSE".

OGL shares will be introduced at Rs. 23.00 which was the same price at which the private placement was carried out in December 2010. At the introductory price, the Company will have a market capitalization of Rs. 1.2 billion at a PE of 10.00

The Finco Group of Companies with its history of nearly 50 years is today a well-diversified conglomerate with interests in a set of diversified business sectors encompassing Construction, Travel, Leisure, Manufacturing, IT and so on. The Groups portfolio includes Sri Lankas iconic MI contractor, International Construction Consortium (Pvt) Limited, which is known as ICC and the leading office furniture and equipment manufacturer under the well-known brand "Alpha", Alpha Industries (Pvt) Limited.

The Board of Directors include; Sarath Chandra Weerasooria, NonExecutive Chairman, Rajinda Priyanjith Weerasooria, Managing Director, Harsha Mahendra de Saram, Executive Director, Sunil Karunanayaka, Non-Executive Independent Director and Dinesh de Zoysa, Non-Executive Independent Director. The island

Finco Holdings (Pvt) Limited has sold 20% of Orient Garment Limited
30th June 2011, the PW Corporate secretarial (Pvt) ltd Announced to Colombo Stock Exchange that, the Finco Holdings (Pvt) Ltd which held 80.98% of Voting Shares of Orient Garments Limited, has sold 10,983,400 shares at an average price of Rs.28.07 per share