CSE to do 15 more IPOs this year
Thanks to the ‘valiant’ efforts by the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission (SEC) some 15 Initial Public Offerings (IPOs) are in the pipeline for this year, capital market officials said.
This is on the back of three (IPOs) already done so far for the year.
WindForce Ltd, listed at the CSE in April attracted a total foreign investment of Rs.531 million on the very first day of trading. Chrissworld Ltd on the Empower Board was oversubscribed on the first day itself and raised Rs. 56.25 million. Prime Lands Residencies Ltd is seeking a listing on the CSE with 100 million new shares at a price of Rs. 10.40 per share with an option to issue a further 87.5 million shares in the event the first 100 million are oversubscribed.
Officials said that some prominent family firms are also in line to list.
Special Purpose Acquisition Company (SPAC), a shell company set up by investors to raise money through an IPO to eventually acquire another company has also fetched much interest. A SPAC has no existing operations or underlying business and is founded by one or a group of sponsors, being well-known entrepreneurs, private equity or industry experts making one or more acquisitions. “Already a consortium of investors is eyeing a SPAC no sooner the CSE sanctions rules,” an official told the Business Times.