Colombo Stock Exchange - Insider Tips / Investment Tips

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July 08, 2010 (LBO) - The initial public offer by Sri Lankan retailer Odel has been oversubscribed by 63 times, setting a record on the Colombo Stock Exchange (CSE) in recent times, a statement said.
The Colombo Stock Exchange’s previous record for oversubscription of an IPO was by 20 times, it said.

Channa Amaratunga, Director of CT Capital, lead manager of the Odel IPO, said 22,686 applications had been received from the public, with a cumulative value of 15.995 billion rupees.

The IPO on June 5 closed the same day owing to oversubscription.

Odel offered 16.7 million shares, an 11.5 percent stake in the company’s equity, at 15 rupees per share.

The statement quoted CSE chairman Nihal Fonseka as describing the Odel IPO as a potential catalyst for more listings on the Colombo Stock Exchange.

Fonseka said the very high degree of interest sparked by the IPO also reflected the optimism prevailing in the market, and is an indication that investors are looking for exciting new stocks.

Of the IPO shares, 1.2 million were set aside for applications from employees, three million for applications of up to 5,000 shares, and 12.5 million shares for applications for more than 5,000 shares.

"We are overwhelmed by the response we have had for our IPO," the statement quoted Odel founder and chief executive Otara Gunewardene as saying.

"The figures have been much higher than our usually high expectations. We are extremely pleased with the confidence and the support shown by the public for the brand. We are also happy that it has influenced many first timers to invest in the stock market."

The basis for the allocation of shares to applicants is to be decided shortly.

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The government is looking to sell stakes in state-owned entities in the near future through public share issues, according to officials. They said that after SriLankan Airlines Catering and Shell Gas goes public, Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB), SriLankan Airlines, ITN and Sri Lanka Insurance Corporation (SLIC) will follow suit.

Media Minister Keheliya Rambukwella also confirmed this and told the Business Times that the government is favourably looking at selling stakes in these institutions. “The time is right (to list) and all indicators are pointing favourably at listing. The concept of the government at present is to ‘give to the people’ so that they will have a say,” he said, adding that such public participation in these entities will facilitate the people to voice their opinions (at Annual General Meetings).

A team of experts from the Treasury, the Central Bank and some financial consultants are working on the modalities of listing these entities. “They are planning the strategies taking into consideration the mood in the share market and the interest of the people,” he said.

Highly placed sources told the Business Times that many of these entities are debt ridden and that the government is discussing to list about 15 to 20% of each entity at the Colombo Stock Exchange to initially retire their debts and then streamline these entities.

“Listing brings in better corporate governance and better performance to these entities,” one source said. Minister Rambukwella added that the government is constantly realigning its strategy and will infuse private sector participation while keeping the people’s interest at heart when going for Initial Public Offerings.

Nishantha Wickremasinghe, Chairman SriLankan Airlines (SLA) told the Business Times that SriLankan Airlines is planning to divest a part of its fully owned catering unit through a public listing to raise around Rs 60 million. He said that SLA is planning to separate its MRO Department – Maintenance, Repairs and Overhaul - into another subsidiary. “We will form a separate firm at Mattala, Hambantota with a larger engineering facility,” he added, noting that this company too will be listed at a later date.

He said that SLA is also planning an aeronautical engineering academy to be formed in the same area to train technicians. “We can attract international students with such a facility and also retain local engineering students,” he noted. He added that this entity too will be listed in time to come. “After this we’ll consider an SLA listing,” he added.

ST

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DHAKA, December 8, 2010 (AFP) - Riot police took to the streets of the Bangladeshi capital on Wednesday to control thousands of angry investors protesting over a dramatic fall in shares on the national stock exchange.
Protesters burnt office furniture in front of the Dhaka Stock Exchange building and brought traffic in the centre of the city to a standstill.

Shares on the benchmark DSE General Index showed a loss of more than six percent at one point during a volatile day before recovering to close down 1.56 percent at 8,451.59

"There were 2,000-3,000 small investors who protested over the stock market plunge. They broke up as the market rebounded later in the day," local police chief Tofazzal Hossain told AFP.

Scores of others held protests in the southern city of Barisal, police said.

Reaz Islam, head of New York-based LR Global Fund, said a series of measures to cool the overheated stock exchange by the country's Securities and Exchange Commission (SEC) and the central bank had created panic among investors.

On Monday, the SEC had stopped brokerage houses from executing share transactions until the cheques are cashed, but Islam said this order has been frozen on Wednesday, which had helped lift the market.

Analysts have warned for the past 18 months that the market is dangerously overheated, with share values no reflection of the underlying value of the companies.

Wednesday's protests are likely to raise fears of the social impact of a major correction if the bubble bursts.

On Sunday, the index hit a record high of 8,918.51 points, up around 60 percent since the start of the year.

The bull run has lured tens of thousands of new investors, with demand for shares far outstripping supply.

Last month, the government forced the listing of dozens of state-owned companies in a bid to create new shares to satisfy local demand and soak up excessive liquidity.

"People wanted to make money quickly so they bought into the stock exchange without knowing anything about market fundamentals," said Islam.

"In the last three months, banking stocks, which account for 30 percent of the market alone, gained 40 percent, which is absurd," he said. ....


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I guess DSE badly need a new building first

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[pathum1986]

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I guess DSE badly need a new building first[/QUOTE]

mmmmmmmmm..............

[dfdo]

Sri Lanka’s Dialog to expand network
14 February 2011

Axiata’s Sri Lankan subsidiary Dialog is to spend $150m on upgrading its broadband network

Read more: [Axiata] [Dialog] [Sri Lanka] [broadband] [fibre] [Malaysia]

Sri Lankan mobile operator Dialog Axiata is investing a total of $150 million to finance a fibre upgrade and broadband network expansion.
The unit of Malaysia’s Axiata will invest $150 million towards the advancement and expansion of ICT infrastructure in Sri Lanka with the Board of Investment of Sri Lanka.
The investment will boost the nation’s information and communication technology sector, which the government has aimed to help fuel rapid economic growth.
Dialog, which was listed on the Colombo Stock Exchange in 2007, has brought $1 billion in foreign direct investment since its inception in 1994. It now has seven million subscribers in a market, which had over 15 million subscribers.
Apart from being a core mobile company, Dialog has operations in broadband, fixed voice and pay television. GTB