Mackwoods Energy Limited (MEL) has not met the requirements to be listed in the Colombo Stock Exchange’s (CSE) Main Board and hence will be listed in the secondary Diri Savai Board, a statement by the CSE said.
According to rule 2.1.2 of the CSE listing rules, for shares of a company to be listed on the Main Board, it has to fulfill the minimum public holding requirement of 25 percent and the minimum number of 1000 shareholders’ holding not less than 100 shares each.
According to the CSE statement, subsequent to the completion of MEL’S Initial Public Offering (IPO), the firm had notified the CSE that these requirements had not been fulfilled.
However, the CSE said the firm has fulfilled the criteria for a Diri Savi Board listing as set out in rule 2.1.3 of the listing rules, and accordingly the shares of the company would be listed on the Diri Savi Board with effect from April 25.
Meanwhile the MEL prospectus at the time of the IPO noted that the company would meet the minimum stated capital requirement and the minimum public holding requirement of the CSE on the completion of the issue, subsequent to which the listing of the entire ordinary voting shares of the company will take place on CSE Main Board.
However, it also noted that in the event of an under subscription, where MEL is unable to meet the requirements, the company would alternatively opt for a listing on the ‘Diri Savi’ Board of the CSE.
To be listed on the Diri Savi Board, a Company has to meet the minimum public holding requirement set out in Rule 2.1.3(c) which stipulates that 10 percent of the total number of shares for which a listing is sought, should be in the hands of a minimum number of 100 public shareholders holding not less than 100 shares each.