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Tuesday, 8 April 2014 00:01 - - {{hitsCtrl.values.hits}}
Members of the business community within the Central and Wayamba Provinces showed an avid interest in the possibility of raising capital through listing on the Capital Market, at a forum held recently to inform entrepreneurs on the benefits of going public.
The issuer relations forum, held on 5 April at the Earl’s Regency in Kandy, was jointly organised by the Securities and Exchange Commission of Sri Lanka (SEC) in association with the Colombo Stock Exchange (CSE) and saw the participation of over 50 businessmen from the region. This was the second 
issuer forum organised by the SEC and CSE in regions outside Colombo. The first was held in Jaffna recently.
The program began with a clear elucidation on the benefits of listing both equity and debt through presentations made by CSE CEO Rajeeva Bandaranaike and a presentation on ‘Debt Finance via Debentures as an alternative to Bank Finance’ presented by Chairman of Wealth Lanka Management Ltd. Mangala Boyagoda.
A lively panel discussion which followed these presentations illuminated those present on the vital areas of the listing process while falsifying a number of myths and fears that participants had about the listing process. The panel comprised of the Legal Officer at the Department of Registrar of Companies Heshan Mathugamage, CSE CEO Rajeeva Bandaranaike, SEC Director Corporate Affairs Harshana Suriyapperuma, CSE Head of Listings & Corporate Affairs Priyana Gunesekera, Central Finance PLC Director Finance G.S.N. Peries and Wealth Lanka Management Ltd Chairman Mangala Boyagoda. During the discussion a number of key questions were posed by the audience to facilitate a lively and informative dialogue.
“There are a number of myths about the drawbacks of listing; chief among them is the idea that being a listed entity will result in the loss of control. However this is certainly not the case because as a listed company on the Diri Savi Board you need to list only 10% of your total shares and on the Main Board the percentage is only 25%. It is also vital to remember that there is no loss of confidentiality or competitive advantage by listing,” SEC Officer-in-Charge Dhammika Perera said in his opening remarks.
“For those who fear losing ownership of their business corporate debt is a prudent option. You are able to tap into an alternate source of funding without the dilution of ownership,” Wealth Lanka Management Ltd. Chairman Mangala Boyagoda added.
“By listing your company you enhance the visibility of your business entity, are able to ensure good corporate governance and be transparent in your dealings. Further by separating ownership from management you are able to attract the best talent in the market and retain them,” CSE CEO Rajeeva Bandaranaike said.
“In order for entrepreneurs to see the stock market as a viable source for the raising of capital it is necessary that we debunk any myths on listing and educate them on the clear and concise listing process that is in place. Significant opportunities for prospective entities are available in order to get their companies listed including the incentives granted through the National Budget,” SEC Director Corporate Affairs Harshana Suriyapperuma said.
Expanding on the benefits of listing, through the experience of Central Finance, incidentally the first Company to list from the Central Province, Director Finance of Central Finance PLC G.S.N. Peries explained: “When Central Finance decided to list nearly 40 years ago one of the primary reasons for this decision was the guarantee that being a listed company would ensure good corporate governance. As a company that was doing business with other people’s funds, it was felt that this element of good governance and transparency was vital for the business to grow and expand.”
