The Colombo Stock Exchange (CSE) and the capital market regulator, the Securities and Exchange Commission (SEC) are concerned about some listed firms that have never been traded or only have had a few trades, since they went public a few years ago.”The SEC is going though the history of these firms and the CSE will try to entice them to be more active in trading,” a source told the Business Times. Some were listed about two years ago, through introductions, which are a less-expensive alternative to an initial public offering (IPO). An introduction does not result in shares being traded on the main exchange board, but the Diri Savi Board. With introductions, a company sells equity shares directly to the public without the help of investment bankers.
Aitken Spence Plantation (ASPM) for an example is one such firm that was listed in May 2013 and a single trade hasn’t happened. Its public float is 11.78 per cent. AMW Capital Leasing is another. It’s Public freefloat is stated as 10 per cent, but the share has never traded since listing via introduction on 8 June 2011. “This raises questions as to whether it should still be on the CSE,” analyst said. AMW Capital Leasing is another such company which hasn’t seen a single trade. The CSE and the SEC are presently scrutinising such companies and are likely to have discussions with them on the next plan of action,” the source said. Others say that some firms merely go public for price discovery and that once listed aren’t bothered to trade. “But it isn’t a good reflection on the CSE,” the analyst said
www.sundaytimes.lk
Aitken Spence Plantation (ASPM) for an example is one such firm that was listed in May 2013 and a single trade hasn’t happened. Its public float is 11.78 per cent. AMW Capital Leasing is another. It’s Public freefloat is stated as 10 per cent, but the share has never traded since listing via introduction on 8 June 2011. “This raises questions as to whether it should still be on the CSE,” analyst said. AMW Capital Leasing is another such company which hasn’t seen a single trade. The CSE and the SEC are presently scrutinising such companies and are likely to have discussions with them on the next plan of action,” the source said. Others say that some firms merely go public for price discovery and that once listed aren’t bothered to trade. “But it isn’t a good reflection on the CSE,” the analyst said
www.sundaytimes.lk
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