Wednesday, May 25, 2011

CSE down 0.10%, Softlogic’s Rs. 4bn IPO approved

*Comm Bank in rights issue to raise Rs. 9.7bn

The Colombo Stock Exchange dipped 0.10 percent to close at 7,431.97, down 7.18 points on Tuesday. The Milanka Price Index of more liquid stocks closed 0.06 percent higher, gaining 4.22 points to close at 6,857.61. The largest IPO since 2005 was officially approved by the Colombo Stock Exchange yesterday (24).

Softlogic Holdings is planning to issue 139 million shares at Rs. 29 each to raise a little more than Rs. 4 billion. Most of the funds would be utilised to write off debt. The Subscription list would open on June 9, 2011.

Net foreign outflow amounted to Rs. 140.7 million.

Turnover at the bourse reached a little more than Rs. 2.5 billion during the day with more than 115 million shares changed hands.

92 counters closed in positive territory against 105 that closed negative.

"Interest prevailed on speculative counters while interest was also evident on CLND and CSF. LFIN also gained some attention, triggered by the March quarter results, in our view," Bartleet Mallory Stock Brokers said.

CLND generated turnover amounting to Rs. 488.2 million trading at Rs. 34.90.

Meanwhile, Citrus Leisure PLC announced that it had invested in 19,987,400 CLND shares at Rs. 20 each, through a subsidiary company.

Commercial Bank of Ceylon PLC announced a rights issue to raise approximately Rs. 9.7 billion. The bank also announced its intention of subdividing shares.

Through the right issue, the bank plans to issue around 90.9 million ordinary voting shares for every seven shares held at Rs. 181.65 each. It would also issue around 3.4 million ordinary non-voting shares at 1:7 at Rs. 130.13 each.

The existing number of ordinary voting shares is around 356.6 million and would increase to around 815.1 million after the rights issue and sub division. Non-voting ordinary shares would increase from 24.4 million to around 55.8 million.

source - www.island.lk

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