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.
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.
source - www.dailynews.lk
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