In a welcome move, Colombo Stock Exchange witnessed a series of Initial Public listings during the years 2010 and 2011. Naturally, when a country is progressing, the equity market also needs to reflect the growth in the economy by capturing a sizeable share.
The year 2010 was a momentous year for the CSE, where the market cap doubled to Rs. 2 trillion reflecting 39.4 % of Sri Lanka’s GDP? It is estimated that in year 2011, there would be 50 new IPOs to be listed which includes few large IPOs in the range of Rs. 4-5 b.
Amidst these positive sentiments, how would investors allocate and prioritise their fund allocations? Would they be carried away with the one page glossy ads that come in leading magazines and other media channels to invest their hard-earned money?