Local firms raise over Rs.77bn through CSE in first 7 months

• Facilitates 12 new listings—7 debt IPOs, 4 equity IPOs and 1 SPO
• Highest number of equity IPOs facilitated since 2014 and largest in cumulative value since 2011
• CSE CEO says stock exchange has established itself as a viable option leveraged by firms as an alternate to traditional capital raising methods

The Colombo Stock Exchange (CSE) evidently had been one of the most preferred options for local corporates of all sizes to raise capital in the first seven months of 2021.

To date, the CSE has facilitated 12 new listings, including seven debt IPOs, with a value of Rs.47.29 billion, four equity IPOs, with a value of Rs.7.49 billion and one SPO, with a value of Rs.3.5 billion. 

“It should be noted that this is the highest number of equity IPOs that the CSE has facilitated since 2014 and the largest in cumulative value since 2011,” a CSE statement said. 

In total, the stock market has facilitated the raising of Rs.77.30 billion. This includes Rs.10.99 billion raised by equity IPOs and the SPO, Rs.47.29 billion raised by debt IPOs, Rs.16.56 billion raised by rights issues and Rs.2.46 billion raised by private placements.

 The five equity initial and secondary public issues held during the year so far include Windforce PLC, Chrissworld Ltd, Prime Lands Residencies PLC, JAT Holdings Limited and Sanasa Development Bank, all of which were launched with successful public issues. 

The first Empower Board listing, Chrissworld Limited, debuted trading successfully, which is an encouraging start for further small and medium enterprise (SME) listings.

“With state institutions such as the Ceylon Electricity Board (CEB) opting to finance their capital requirements through the Sri Lankan stock market, the CSE has established the confidence of both private and state institutions as an effective and efficient source for capital raising,” the CSE statement noted.

Commenting on the positive development, CSE CEO Rajeeva Bandaranaike added, “As businesses adopt and expand in the current environment, facilitating funding avenues is a primary priority in building a resilient economy in Sri Lanka. In fulfilling this requirement, the stock exchange has established itself as a viable option that can be leveraged by corporates as an alternate to traditional capital raising methods.”

“Together with the Securities and Exchange Commission of Sri Lanka, the stockbroker community, investment banks, other market intermediaries and technology providers, we have actively engaged to drive both investor participation and issuer participation by introducing new rules and processes and improving accessibility and market infrastructure.”