16.7 m shares on offer at Rs. 15 each

The Colombo Stock Exchange has approved the Initial Public Offering (IPO) worth Rs. 250.5 million of Odel Ltd., the country’s popular lifestyle shopping chain.

The IPO issuing 16.7 million shares at Rs. 15 will be up for subscription from June 22 whilst the official date of its opening is July 5. Following the IPO, Odel shares will be listed on the Diri Savi Board of the CSE. Odel is being advised on the listing by CT Capital, which is also the lead manager to the IPO.

“I am excited and confident,” Odel Founder Otara Gunawardene said about the upcoming IPO.

Noting that Odel had been planning to be listed for a while, Otara said the current timing was perfect with the post-war resurgence in the country and the economy, along with a highly active stock market.

Being a trendsetter, Otara via Odel revolutionised the lifestyle shopping in Sri Lanka and her current success, 12 stores in total, has been internally financed via personal equity as well as bank borrowing.

She said that the IPO, apart from enabling the investing public to be a stakeholder of Odel’s future success, would help raise fresh funding via the market, which most term as “zero cost cash”.

Otara said the 10% offering to the public wasn’t symbolic but significant, considering the fact that Odel had been a family-owned business since its inception. “The amount we intend raising (Rs. 250.5 million) is what we require right now and we may consider additional measures later on,” Otara added.

Odel’s vision has been ‘To be Sri Lanka’s foremost lifestyle; INstyle Brand; with global reach,” whilst its mission is to provide customers with an unparalleled selection of fashion right and lifestyle products in an environment that is enjoyable and welcoming and encourages customers to tap into their creativity and explore their personal styles.

Both Otara and Odel are award winners.   Since November, Otara has spearheaded a rapid yet carefully planned expansion, opening Odel outlets in Mount Lavinia, Moratuwa, Panadura and Maharagama, whilst the next location will be Battaramulla.

Some of the new locations are evolving shopping hubs in the Greater Colombo area and there are plans to open up a few more before the end of the year. The ODEL chain in Sri Lanka includes Alexandra Place, Kohuwala, Ja-Ela (Realty Plaza), Majestic City, Dickman’s Road, Nugegoda (Warehouse), Crescat (Backstage) and the Bandaranaike International Airport.

Otara’s strategy of opening outlets in the suburbs or popular towns outside Colombo is to enable more people within select towns as well as nearby areas, while also elevating the shopping experience to a new level for those people.

The ODEL website www.odel.lk also offers online shoppers the same ODEL experience from the comfort of their homes or offices, with sophisticated and seamless e-commerce functionality.

DailyMirror THURSDAY, 10 JUNE 2010   | http://www.dailymirror.lk/print/index.php/business/127-local/12675.html