More IPOs in the offing, adopt wait and see policyHiran H.Senewiratne
The government must come with proper economic reform polices to avert the current volatile situation in the capital market,a capital market specialist said.
Several financial, manufacturing and exporting companies are waiting till these conditions become stable to go for an Initial Public Offering (IPO),Candor Group of Companies Sales Head, Mohammed Riyas told the Daily News business. "At presents several financial, manufacturing and exporting companies have applied for IPOs.However, due to the current volatile condition in the market in terms of rupee depreciation against the US dollar, prospective companies are adopting a waiting policy till conditions improve to become stable, Riyas said.
He said the current expectations depend on the rupee value against the US dollar because several importers and manufacturing companies will find it difficult due to the cost going up with the depreciation of the rupee, while it will benefit exporting companies favourably. "Under this scenario, several prospective companies are waiting till the right time to go for an IPO.
Therefore, the new government should come out with proper economic reforms to avert this volatile situation in the Colombo Stock Exchange," Riyas said.
Sri Lanka's creditworthiness will be decided on the economic development that the new government will be able to maintain in the future and the ability to manage its government debts, says prominent international rating agency Moody's.
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