Wednesday, April 7, 2010

All finance companies to get listed in the Colombo Stock Exchnage before August 2011 - Vallibel Finance 01

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.

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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