The Colombo Stock Exchange (CSE) is hoping to have 20 companies launch their stocks to the public this year. They already have 5 or 6 companies lined up, according to Dilshan Wirasekara, the Chairman of the CSE.
In 2024, the amount of money raised through various stock market activities, like companies offering shares for the first time (IPOs), raised about Rs.170 billion, which was a record high.
However, last year, the CSE had planned for 10 IPOs but ended up with only 4 or 5. One of the big IPOs that didn’t happen was for LTL Holding, which had been expected to raise a lot of money—up to Rs.20 billion—by selling a portion of their shares. This IPO faced legal challenges, and now the government needs to make the final decision on whether it will go ahead.
One of the challenges companies face when deciding whether to go public is how the stock market values them. Companies usually hesitate to list on the stock market when prices are low, as they can’t get the full value of their shares. But with stock prices rising, more companies may decide to go public this year.
Wirasekara also mentioned that the government is still making decisions about a big change called “demutualisation” for the CSE. This would change the way the stock exchange operates, and all stockbroking companies involved have agreed to a proposal that splits the control between them and the Capital Market Development Fund
