Sri Lanka’s WindForce Commences Trading on CSE above IPO Price

On Thursday, Colombo-headquartered independent power producer WindForce Limited, commenced trading on the Main Board of the Colombo Stock Exchange (CSE) above its price of LRK 16/share after raising an initial public offering (IPO) for wind power projects in Sri Lanka and Senegal, amounting to LRK 3.2 Billion- the largest at the CSE since 2011- which attracted 1,654 applications adding up to LRK 25.7 billion. Being oversubscribed by 8 times on the first day, the stock debuted at LRK 17.90 and even reached LRK 19 in intra-day trading.

The firm was incorporated in July 2010 to promote and handle all aspects of renewable energy developments, and became a pioneer in wind and solar power generation in its home country. Over time, the company has become the largest IPP in the country’s renewable sector and has expanded its reach to markets beyond its borders, including Pakistan, Uganda, Ukraine, etc. It now operates a total of 27 power plants of 218 MW capacity, of which 55.4% is based in Sri Lanka and the rest internationally.

At the bell ringing ceremony at the Colombo Stock Exchange, WindForce’s Chairman Ranil Pathirana said, “With the world is moving more towards the clean energy and our government policy to achieve a larger percentage of power through by renewable energy,” adding that the company is confident to grow in Sri Lanka and overseas and become a truly global clean energy power company.

A few days back, WindForce confirmed that it will use part of the proceeds from the IPO to acquire 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 account for one third of the project each. The solar farm will supply electricity to local utility CEB under a 20-year contract at a price of LRK 14.41/kWh, and the company’s total investment in the purchase and development is expected to be around LRK 1.4 billion.

CSE Chairman Dumith Fernando said that WindForce is a significant boost to the stock market, being the largest IPO on the CSE in 10 years whose listing approval was granted in a record 3 weeks. He added, “How appropriate it was to have the shares of this leading Sri Lankan renewable energy MNC begin trading on Earth Day 2021!”