Decision to be based on hSenid IPO performanceIntroduction of 30% stake to raise Rs. 500 m likely
By Shenal Fernando
Local start-up Arimac Lanka, a premier end-to-end digital solution provider in the country founded by Chamira Jayasinghe, is considering listing in the Colombo Stock Exchange (CSE) by way of an equity initial public offering (IPO), The Sunday Morning Business learns.
Speaking to us, Arimac and NP Capital Group Chairman Nimal Perera stated that although no board-level discussions were yet held with regard to going public, he was considering recommending such to the Board.
He further claimed that, since no software company was listed in the Colombo Stock Exchange (CSE) in the recent past, they would be making the decision on where to go for an IPO based on the performance of software company hSenid Business Solutions’ IPO.
Explaining further, Perera stated: “We have been trying to raise funds from external private investors, and we have successfully completed two rounds of funding. We are now thinking of going for a third round of funding. If the hSenid IPO is successful, this third round would be raised through an IPO.”
If Arimac were to go for an IPO, they will do so by Q1 2022, and would consider offering a 30% stake in the company in order to raise around Rs. 500 million. The capital raised will be used for the development of the company and for product development, added Perera.
In 2017, Perera, through his venture capital firm NP Capital Ltd., acquired a 50% stake in Arimac for Rs. 250 million, following which he was appointed Arimac Chairman.
Since being founded in 2011, Arimac has provided its services in developing state-of-the-art solutions for over 100 local and international brands such as Microsoft, Vodafone, Visa, Emirates, Coca Cola, SriLankan Airlines, and Unilever. This saw it evolve into a $ 11 million venture. The company’s reach is expanding across key markets in the APAC region, the Middle East, and the Caribbean.
Speaking to us previously in August, Arimac Founder and Chief Executive Officer (CEO) Chamira Jayasinghe claimed that the company has a strategic goal of achieving a valuation of $ 1 billion by 2026. “We are also aiming to acquire and nurture 50 start-ups to support the IT industry in the Asian region. We want to be Sri Lanka’s first unicorn in the IT sector. We have a clear roadmap in place in order to achieve this goal.”