Understanding strategic value of listing on CSE

Colombo Stock Exchange (CSE) Listing Division Vice President Kanishka Munasinghe outlined the strategic value of listing on a stock exchange, detailing the role of the Listing Division, followed by the benefits for companies, broader economic impact and essential considerations entities must assess before going public.

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The Listing Division of the CSE supports both potential and existing listed companies in raising debt and equity capital through a diverse range of products. The division's role includes reviewing applications from prospective issuers and granting approval to those that meet the required criteria and comply with the applicable rules for listing on the CSE, whilst positioning the CSE as the most preferred platform for further capital raising by the listed companies. The Listings Division also strives to grant approvals within the stipulated timelines, provided all documentation is submitted in compliance with the listing rules.

In reviewing the initial listing applications of both potential and existing listed companies, the Listing Division ensures that such companies have adhered to the applicable Rules of the CSE and CSE Listing Framework, which maintain transparency and adequacy of disclosures made in offer documents (i.e. prospectus, introductory document and circular to shareholders).

The CSE's review process also includes an in-depth analysis of the potential issuer's financial performance in the present operating history and a financial analysis conducted for a pre-defined future period. All listing applications are reviewed by a dedicated listing review committee comprising several members of the CSE's senior management, who are responsible for granting approval for listings.

Overall, the entire review process carried out by the CSE ensures that the potential issuer conducts an initial public offering (IPO) and the existing issuers carry out further issues of securities, in line with the rules, regulations and procedures of the CSE.

In addition to the above, the CSE Listing Division also:

► Advises listed companies, potential issuers and investment banks on listing of securities and application of the CSE Listing Rules/Listing Framework.