Sri Lanka's stock market to get new listings

Feb 27, 2009 (LBO) – Sri Lanka's tiny equity market is set to expand with four companies having submitted listing applications, a senior official at the Securities and Exchange Commission (SEC) said.
This includes South Asian Textile Mills Limited which has confirmed an Initial Public Offering (IPO) within the next two months.

"Apart from South Asian Textiles three more companies will be listing at the Colombo Stock Exchange (CSE)," said Channa de Silva, director general, SEC.

"Two companies are in the manufacturing business and the one is in power generation."

Singaporean-owned South Asian Textile Mills will offer more than 25 percent of equity to the public in the IPO, de Silva said.

"The total estimated value of South Asian Textile Mills is approximately two billion rupees."

"The public will be offered about 600 million rupees at the IPO."

South Asian Textiles' manufacturing facility is based at the Pugoda industrial estate in Pugoda, north of Colombo.
This is the second textiles company that will get listed on the Colombo bourse, after Hayleys MGT Knitting Mills.

"So this is a positive sentiment. We hope the new listings will boost the market and provide much needed liquidity," said de Silva.

"Even though times are tough, this initiative will encourage other companies to list at the exchange."

At present there are 235 companies listed on the CSE.