• CSE Chair confirms largest IPO in history coming up
• 5 additional IPOs expected before end-2024 
• Revival in investor interest a sharp contrast to subdued IPO activity of past 2 yrs.

The Colombo Stock Exchange (CSE) has revealed plans to hold the largest Initial Public Offering (IPO) in the history of the CSE in September.

Speaking to The Sunday Morning Business, CSE Chairman Dilshan Wirasekara revealed that a formal application had been received from a prospective issuer to hold an IPO, which, if listed, would be the largest in the history of the CSE. 

However, he refused to divulge the identity of the prospective issuer.  

Elaborating further, he stated that the CSE was currently processing the IPO and that the prospective issuer was hoping to hold the IPO by mid-September.

Commenting on the other IPOs in the pipeline, he stated: “We expect about five more IPOs this year, for which applications have already been made. We already had three IPOs this year, namely, Maharaja Foods, Cable Solutions, and Cargills Bank. 

“Five more are being processed right now. While I can’t guarantee that all five will come through, I can confirm that we are currently looking at five applications. I think we will end the year with around 6-7 IPOs.”

This increased interest in listing on the CSE in 2024 stands in stark contrast to the situation over the previous two years, during which investor and issuer appetite for IPOs in the Colombo bourse was severely repressed due to the unfavourable valuations in the market following Sri Lanka’s economic crisis. 

However, prior to the economic crisis, over the period from mid-2020 to 2021, the Colombo bourse saw a significant uptick in market activity as many new retail investors entered the bourse following the digitalisation of the CSE, resulting in the benchmark All-Share Price Index (ASPI) reaching its all-time high of 13,462.39 on 19 January 2022. 

Amid this bull market, raising capital through equity markets was in vogue, particularly in 2021, which saw the CSE record 28 IPOs, the second highest figure recorded in the history of the bourse, 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.