Two family businesses to go public
View(s):At least two family businesses are working towards going public in the Colombo Stock Exchange (CSE) after the CSE with the Securities and Exchange Commission of Sri Lanka (SEC) recently engaged the family business community on the benefits of listing.
Prime Lands, a property company and JAT Holdings, a local paint company, are amongst the most spoken about in the market in going public.
Many companies were interested in the regulatory benefits and tax advantages post IPO, market sources added.
Stock market sources told the Business Times that the Issuer Forum for 2021 hosted on the theme ‘Founder to Family – Leveraging Going Public’, at the Shangri-La Hotel Colombo by the two agencies saw many firms following up with the CSE on listing.
The forum drew an encouraging response from the family business community and was attended by over 70 representatives of prominent family businesses in Sri Lanka, the CSE said in a release.
Viraj Dayaratne, Chairman SEC at the forum had said, “One of our objectives is to increase liquidity of the market. There are many misconceptions in the market. One is that the listing process is cumbersome, that it takes time and also that it can be very expensive. But it is not cumbersome or expensive as many would perceive. It is one of the best options to raise capital. And that is why we want businesses to come to the capital market and make use of the opportunities. Government has created a healthy environment. The last budget proposal has given many tax incentives which are open until the end of the year. So it is the best time to come and list your company.”