Mar 22, 2011 (LBO) – Senkadagala Finance, a closely-held registered finance company, was allowed to trade on Colombo’s Stock Exchange on March 22, but there were no deals despite offers going up to ten times its net asset value, dealers said. The CSE is shortly to bring minimum ‘free float’ limits for listed companies to improve their liquidity.
The firm has net asset of 19 rupees a share and there were bids up to 202 rupees on the stock exchange’s automated trading system.
Senkadagala is one of a series of finance companies that are listing on a regulator directive ahead of a deadline set for June 30. Finance companies are regulated by the Central Bank.
The firm listed by a process of ‘introduction’ on the CSE’s second board where no formal initial public offer for subscription is required.
In the nine months to December 2010 Senkadagala reported unaudited profits of 161 million rupees up from 57 million rupees a year earlier, giving earnings of 3.02 rupees per share.
According to a stock exchange filing the firm had a public holding of 10.08 percent and 19 shareholders.
On Tuesday however no shareholder was selling. Brokers said no shares appeared to have been lodged in the central depository to sell either.