Companies mobilize over Rs 75Bn in first 7 months of 2021 via capital market: CSE

The Colombo Stock Exchange (CSE) has showcased a strong growth trajectory in Capital Raising by Sri Lankan corporates of all scales during the first 7 months of 2021.

To date, the CSE has facilitated 12 new listings, including 07 debt IPOs with a value of LKR 47.29 Bn, 04 equity IPOs with a value of LKR 7.49 Bn and 01 SPO with a value of LKR 3.5 Bn. 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. In total, the stock market has facilitated the raising of LKR 77.30 Bn. This includes LKR 10.99 Bn raised by Equity IPOs and the SPO, LKR 47.29 Bn raised by Debt IPOs, LKR 16.56 Bn raised by Rights Issues and LKR 2.46 Bn raised by Private Placements.

The 05 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 Ceylon Electricity Board (CEB) opting to finance their capital requirements through the Sri Lankan stock market, the CSE has established the confidence as an effective and efficient source for capital raising.