Vallibel Finance gets listed
Charumini de Silva
Only seven companies are still listed in the Colombo Stock Exchange (CSE),
of the total of 37 Registered Finance Companies (RFCs). Vallibel Finance
is the latest RFC to get listed in the CSE. The Central Bank has made it
mandatory for all finance companies to get listed in the CSE before
August 2011. “Getting listed in the CSE will help companies to raise
capital in an efficient manner.
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Managing
Director, Jayantha Rangamuwa |
This will also have better transparency, encourage good corporate
governance and build an improved public image, Vallibel Finance Managing
Director, Jayantha Rangamuwa told Daily News Business.
He said entering into the capital market will boost the finance
sector and also help to expand the country’s economy.
“We are confident about the stable economic atmosphere in the
country. There is much potential in rural areas. Seeing the prospects in
rural areas Vallibel Finance will support and uplift the standard of
local entrepreneurs. There is tremendous scope for the SME to enhance
their business,” Rangamuwa said.
Vallibel Finance’s Initial Public Offering (IPO) was oversubscribed
by more than eight times. The company was to issue 5.2 million shares,
but there were applications for more than 47,000 million shares, which
accounts to Rs 1.05 billion.
“The response received from the investors was outstanding as this IPO
was prepared soon after another IPO.
Although there was a negative impression about finance companies
during the past two years, now the customer and investor confidence has
gained. This clearly demonstrates the credibility of the shares, trust
and their confidence,” he said.
Rangamuwa said many local and few foreign fund managers have
responded to the IPO.
The company has not finalized the amount of shares that they hope to
offer, as there are many applications. “We will consider every investor
category as it is equally important. It is our duty to safeguard and
encourage the small investors.
As of now the company has thought of offering 10 percent share per a
relatively small applicant in their IPO since these investors trust and
have confidence in us,” he said.
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