Connect with us

Business

Revisiting rules governing basis of IPO share allotments

Published

on

The Colombo Stock Exchange (CSE) is in the process of revisiting the listing rules governing the basis of allotment of shares in an IPO to ensure greater transparency and fairness in allotting shares to applicant subscribers by prospective issuers.

In this regard, the CSE has formulated a revised regulatory framework to be adopted by prospective issuers when allocating shares offered under an IPO.

Present Rule 2.1.1 (g) of the Listing Rules of the CSE sets out the manner in which shares of IPOs should be allotted to certain categories of investors. The CSE is in the process of revising same to ensure greater transparency and fairness in the share allocation amongst applicant subscribers by the Issuers.

The revised regulatory framework to be adopted in respect of the basis of allotment in an IPO is enumerated and such revised regulatory framework strives to addresses the following aspects:

– Where the value of the IPO is less than Rs. 3 billion, expanding the definition of ‘retail individual investors’ to accommodate investors applying for a value of Rs. Two Hundred and Fifty Thousand (Rs. 250,000/-). This would increase the number of applicant subscribers, who would be classified as ‘retail individual investors’ and thereby be eligible for the mandatory allotment of 40% of the shares of the IPO under the said category.

– Where the value of the IPO is above Rs. 3 billion, specifying a minimum percentage of shares that could be made available to the retail individual investors and to define ‘retail individual investors’ as those investors who would apply shares in the IPO for a value of Rs. Five Hundred Thousand (Rs. 500,000/-).

– Requiring the Issuer to identify the categories/types of investors who would be considered by the Issuer as ‘strategic investors’ and receiving shares of the IPO on a preferential basis.

– Where the value of the IPO is less than Rs. 3 billion, specifying a maximum percentage of shares that could be made available to such ‘strategic investors’.

– Specifying a maximum percentage (%) of shares that could be made available to employees in any IPO.

This would ensure that no undue advantage is offered to the such ‘strategic investors’ or employees of the Issuer over and above the investing public at large.

– To introduce a requirement to lock-in of the shares allotted to all persons on a preferential basis.

– Mandating the disclosure of shares allotted to persons on preferential allotments.

– The allocation of shares to the unit trust category to be expanded to include any unit trust approved by the SEC.

– Where the value of the IPO is above Rs. 3 billion, specifying a minimum percentage (%) of shares that must be made available to the unit trust investor category.

The above proposed regulatory framework is now available on the website of the CSE (www.cse.lk) for public comments. The CSE invites the public to submit comments or opinions in writing on or before February 11, 2022.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Mahindra Ideal Finance One of Sri Lanka’s Great Places to Work

Published

on

MIFL team at the Great Place to work® Awards ceremony for Best 10 companies in the Banking, Financial Services and Insurance industry held at the Hilton Hotel, Colombo.

Mahindra Ideal Finance is not only one of Sri Lanka’s leading finance companies, but also one of Sri Lanka’s top employers of choice, attested to by the Company being certified as a Great Place to Work for 3 consecutive years, most recently in 2021.The Company has also been recognized amongst the Best 10 companies in the banking, financial services and insurance sector in 2021 by the Great Place to Work® Sri Lanka. As a result, Mahindra Ideal Finance has attracted a diverse group of individuals at the top of their game to be a part of the Company’s various teams. Having embarked on a landmark islandwide network expansion strategy, Mahindra Ideal Finance is also creating new opportunities for aspiring Sri Lankan professionals looking to build solid careers in financial services.

Duminda Weerasekara – Chief Executive Officer said, “As we are growing our presence around the country through the expansion of our branch network, we are looking for driven and passionate people to reinforce our teams. As we have been a dedicated, caring and trustworthy employer since our inception, Mahindra Ideal Finance is the ideal platform for dynamic young professionals looking to launch or grow their careers.”Great Place to Work®, headquartered in the USA, is the global authority on high-trust, high performance workplace cultures. Great Place to Work provides the benchmarks, framework, and expertise needed to create, sustain, and recognize outstanding workplace cultures.

Continue Reading

Business

Daraz Cares introduces ‘Buy one Give One’ initiative – To support families in vulnerable communities

Published

on

The unfolding economic crisis in the country has presented Sri Lankans with unprecedented challenges, including scarcity of essentials, escalating living expenses and deteriorating living standards. The impacts of the crisis are graver and more ominous for those in vulnerable communities, where families struggle to make ends meet amidst mounting financial difficulties.As part of its commitment to give back to the community, Daraz Cares has come forward with a social initiative that pledges support for families in vulnerable communities. The initiative themed ‘Buy One, Give One’ will support Sri Lankan families faced with financial challenges with a pack of selected daily essentials. The selected items for the ‘Buy One, Give One’ initiative are, a 1kg pack of CIC Sudu Suduru Rice,a 500g of Orient Mysoore Dhal, a 300g pack of Maggi Coconut Milk Powder, 500g of Orient White Sugar, and 500 g packs of Sunlight Lemon and Rose Detergent Powder, which are all available for purchase via Daraz Mart.

The initiative will be implemented in a manner that, each time an individual purchase any desired quantity of one of the nominated items on the Daraz app, Daraz will donate an equal quantity of the same product to a family in vulnerable communities.Daraz invites everyone to purchase a preferred quantity of the selected items via www.daraz.lk/dmart/ and become a part of the ‘Buy One, Give One’ social initiative.

Continue Reading

Business

DIMO partners with Allianz to provide innovative insurance scheme to its TATA customers

Published

on

DIMO together with Allianz recently introduced a state-of-the-art motor insurance & claim settlement scheme designed exclusively for DIMO’s TATA customers.The partnership is focused on assisting the customers to reduce costs incurred during conducting accident repairs through exemption of the owner’s payable portion for TATA vehicles within 5 years of date of manufacture. This innovative facility also offers all TATA customers of DIMO special insurance premium rates at the time of renewal of insurance. DIMO’s TATA customers will enjoy the utmost convenience and zero hassle as both DIMO and Allianz will coordinate all tasks from towing the vehicle to the nearest DIMO-TATA workshop, quick and efficient estimation & approval process, repairing of the vehicle according to exact manufacturer’s specifications, settlement of repair bills to handing over of the vehicle to the customer in original condition.

Ranjith Pandithage, Chairman & Managing Director of DIMO, said, “This partnership will further assist us in offering an enhanced service for our valued customers. As a company, DIMO has always stood for fuelling the dreams and aspirations of the communities we serve in, and it is a pleasure to be able to offer an innovative insurance scheme at a time like this, in collaboration with Allianz.

Gany Subramaniam, CEO of Allianz Insurance Lanka Ltd, said “We are extremely pleased to be partnering with DIMO to offer a customer-centric product, ensuring a vehicle is repaired and restored with minimum hassle.”

Continue Reading

Trending