The Colombo Stock Exchange (CSE) yesterday launched a publication titled ‘A guide to listing on the CSE’, in a bid to raise awareness on equity listing and corporate debt securities.
This issuer relations guide has been initiated under the Securities and Exchange Commission of Sri Lanka’s (SEC) project eight, one of the ten key SEC projects.
Some areas covered under this publication include; considerations when planning for an IPO, the IPO process of a company seeking a listing, along with timing the market, the parties involved in an IPO, timelines involved and the regulatory and legal framework governing these areas.
It also outlines the opportunities and potential benefits for a company seeking a listing on the exchange, including a list of the concessions introduced by the government’s 2013 budget.
“The CSE wants to increase new listings and this is an initiative taken in this regard.
This publication will benefit companies which are planning to list and will also provide valuable insights to those who have not considered listing yet,” CSE Chairman, Krishan Balendra said.
“One of the concerns we have right now is the lack of IPOs coming in to the market. The main reason for this is that most companies are now looking at debt as a solution for raising capital,” SEC Chairman, Dr. Nalaka Godahewa stated on the sidelines of the launch.
However, Godahewa noted that when the equity market picks up, more IPOs will eventually start coming. “To achieve that we will have to do more work like educating people about the processes involved, the benefits, regulations etc. which is a continuous process. This launch is a step in that direction,” he said.