CSE to rethink rules to spur start-ups on Empower Board
The Colombo Stock Exchange (CSE) is trying to change some rules to give an impetus to more start-ups to go public and raise funds, officials say.
“The CSE is now relooking at certain listing rules to see how to accommodate start-ups into the Empower Board,” Head of Market Development, CSE Niroshan Wijesundere told the Business Times. This is still at the preliminary stages, he said.
Launched last July in association with the Securities and Exchange Commission to develop the Small and Medium Enterprises (SME), empowering entrepreneurs, the CSE had a series of forums promoting Empower – most recently a one which was an exclusive forum for the membership of the Federation of Information Technology Industry Sri Lanka (FITIS) recently.
Some 70 tech companies present at the forum were offered a perspective on capital raising opportunities available through going public, where the event also featured a special discussion on the Empower Board launched by the CSE. Speaking at the event, the Chairman of FITIS Abbas Kamrudeen outlined the importance of the IT industry and all stakeholders taking the initiative to drive digital transformation in Sri Lanka, while noting that equity-based funding will offer IT companies opportunities to pursue growth and realise value.
CSE CEO Rajeeva Bandaranaike highlighted the multiple entry channels available and with the launch of the Empower Board, CSE now has the capacity to cater to both large and SME type equity placements.
Capital raising forums conducted in collaboration with industry associations are a key part of a current initiative to create awareness among potential issuers, in addition to a series of regional forums conducted for SMEs based around the country. The next event in this series is set to take place in Jaffna on August 24.