Two more listings via introductions

The Colombo Stock Exchange (CSE) last week announced the approval of two more listings via introductions.

One is by Orient Financial Services Corporation Ltd., to list 115,625,000 ordinary voting shares (115.6 million) on the Diri Savi Board, whilst the other is Commercial Leasing & Finance Ltd., also on the Diri Savi Board with the quantum of ordinary voting shares being 6,377,711,170 (6.377 billion).

These two are the latest to be approved on top an equal number (AgStar Fertilisers Ltd. and Taprobane Holdings Ltd.) year to date

Last year there were 16 listings via introductions as opposed to two in 2010. The remaining 10 are likely to be the final set arising out of applications by end March as the SEC has suspended future listings via introductions.

For Commercial Leasing it is a re-listing as it was originally a public quoted company before moving out in 2009.

It is now under the LOLC Group which took it over from the founders – Commercial Bank, Singer Sri Lanka and Chemanex.

LOLC has been able to build on the strong foundation with shareholders’ funds seeing an impressive growth of 280% to Rs. 6.4 billion by September 2011. The total assets of CLC grew by 176% to Rs. 26 billion. Profit before tax for the year ended 31.03.11 reached Rs. 741 million and the Company reached a PBT of Rs. 2.9 billion for six months ended in September 2011.

Its lending portfolio consisting of lease, loan hire purchase and factoring receivables, grew by 88% over the previous year to Rs. 18.4 b. CLC was successful in maintaining a very high credit quality along with the rapid growth of the portfolio, with a gross non-performing loan ratio of 0.8% and a net NPL ratio of negative 1.9%.

Last week former Central Bank Deputy Governor Priyantha Fernando was appointed to the Board of Commercial Leasing.