By Jithendra Antonio
Being the first stock to enter the trading floor since the beginning of the new financial year, Free Lanka Capital Holdings PLC (FLCH) shares were not able to create much investor interest although the share shot up as high as Rs.7 on its first trading day.
Though the FLCH share opened up at Rs.5.50 (above 10% of the issued price), the share finally closed at Rs.5.70 during the last minutes of market hours. However, the FLCH share did not come below the Rs.5.50 during the day.
A total of 89.28 million shares changed hands with an average price of Rs.5.90, contributing Rs.524 million for the market turnover. Meanwhile, 5.3 million FLCH shares crossed at Rs.7 per share, the only trade recorded at Rs.7.
According to the head of research at CT Smith Stock Brokers, Talaal Maruzook FLCH shares too will come down like every other share that entered the trading floor recently, as there was not much of an uptrend on the first trading day. ‘The share will stabilize after a while. There could be some positive value for FLCH shares, based on trading volumes.
Free Lanka offered 300 million shares at a price of Rs.5 each on March 17, and was listed on the Diri Savi Board of Colombo bourse. It has a total of 1,368 million shares. As per the prospectus, the company had 1068 million shares in issue before the IPO, where 70% is owned by Free Lanka Capital (Pvt) Ltd. Browns Investments (Pvt) Ltd and Perpetual Holdings Ltd hold 4.12% each. The top shareholders of the company were also engaged in a Pre-IPO sell down with both Brown Investments and Perpetual Holdings divesting nearly 20% of the company’s share capital at Rs.4.70 per share.
source - www.dailymirror.lk
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