Senkadagala Finance to list shares; no IPO

The Colombo Stock Exchange (CSE) in principle has accepted a request made by Senkadagala Finance Company Limited to list some of its shares in CSE's secondary board by way of introduction.

Senkadagala Finance, which is a registered finance company in Sri Lanka will list 53.3 million Ordinary Voting Shares in CSE's Diri Savi Board. The company will not go for an Initial Public Offering.

CSE also said the shares will be granted a listing on or before the third market day, upon receipt of the declaration of the company.

The Central Bank of Sri Lanka has directed all private banks and regulated financial institutions to list in the Colombo Stock Exchange, in a bid to increase transparency and accountability of the financial sector.

As per directive, Union Bank which was the last bank to go public, went for an IPO which was oversubscribed by 225 times creating a new record.

According to analysts, as per this directive, finance companies will come to the market, but may not go for IPOs.

"The directive is to list shares, but not necessarily to go for IPOs" a market analyst pointed out.

source - www.dailymirror.lk