25 February 2011

Sri Lanka to See app 50 IPO's in 2011 with atleast Two over Rs5bn by April

24th February 2011, www.lankabusinessonline.com

Sri Lanka will see around 50 initial public offerings in 2011, with at least two issues over five billion rupees (50 million US dollars) by April, securities exchange commission director general Malik Cader said.

"We expect about 10 IPOs to come by March-April this year," Cader told reporters. "About two of them will raise over 5.0 billion rupees each from the market."

Cader said a number of state firms were also slated to come to the market.

The regulator is also looking at current rules on IPO subscriptions where large investors are using bank guarantees to apply for stocks. Small investor have complained that it gives an unfair advantage to large players.

"But there is a view that the market has to have high net worth as well as small investors," SEC chairperson Indrani Sugathadasa said.

"We are looking at the rule and will soon make a decision."

Under current rules generally preference is given to small investors with a larger proportion of their applications being filled.

Usually applications for minimum subscriptions are fully filled.

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