Business

Six IPOs in pipeline already for 2022

  • 2021 saw 28 IPOs
  • Tax concessions for new listing companies might get extended

 

After having 28 initial public offerings (IPOs) last year, the Colombo Stock Exchange (CSE) stated that it already has five to six IPOs in the pipeline for this year. 

According to CSE Chairman Dumith Fernando, their target for 2021 had been 20 IPOs, which was easily surpassed, and he claimed that this reflected the demand and faith in the corporate sector.

In 2021, the CSE recorded 28 IPOs, the second highest figure recorded in the history of the CSE, behind only 2011 and 2013 when the CSE recorded 30 IPOs each year. Out of the 28 IPOs in 2021, 14 were debt IPOs, 13 were equity IPOs, and one was an equity introduction IPO. All 13 of the equity IPOs were oversubscribed within the opening day. 

Meanwhile, the CSE stated that with more and more companies announcing IPOs at the CSE, an extension of the 50% tax concession announced in Budget 2021 for companies that go public, is being sought by the CSE.

The IPO of shares of Hela Apparel Holdings Ltd. (Hela Clothing) received an overwhelmingly positive response, being oversubscribed within hours of the offer opening on Wednesday (12). Having successfully raised Rs. 4 billion in equity capital for Hela Clothing, the offer closed at 4.30 p.m. the same day. 

Interest was witnessed from across a spectrum of investors, with both local and foreign individuals, institutions, and non-retail investors eagerly subscribing to the issue.