Through IPOs, Rights Issues :
Listed firms raise Rs 4.5 b
For business expansions:
Harshini PERERA
Listed companies have raised over Rs four billion from the capital
market through IPOs and Rights Issues during the last two months for
their business expansions. During the last two months, (Jan to Feb)
three companies namely Singer Finance, Panasian Power and HVA Foods have
listed in the Colombo Stock Exchange which have raised Rs 1,318,857,573
worth of capital through the market. These IPOs belongs to the power and
energy, food and beverage, tobacco and banking and finance sectors, the
Colombo Stock Exchange, Business Development section said.
Trading at CSE |
It also indicated that four companies namely Browns Beach, Dunamis
Capital, Marawila Resorts and Guardian Capital Partners have gone in for
Rights Issues during the last two months. They accounted for Rs
3,178,250,100 capital raise from the market which belongs to the hotel
and travel, investment trust and diversified holdings sectors.
“There will be a fairly higher number of listed companies in the
Colombo Stock Exchange (CSE) compared to previous years. Among them,
most would be small companies that would not make a major positive
impact towards the market capitalization. However, we can expect few
large IPO’s which will boost the market capitalization and provide the
investors a broader platform for investments,” Market Analyst, told
Daily News Business.
There will be many companies that would be eyeing to raise capital
through rights issues to support their expansion plans.
He said that it is important to list some of the large profit making
Government entities in the market such as SriLankan Airlines and the gas
company.
The Securities and Exchange Commission (SEC) recently said that
around ten companies are to be listed in the CSE by March and there will
be two to three companies with large amounts like Rupees five billion
each in the market. |