The Colombo Stock Exchange (CSE) launched an educational series on ‘How to Invest in Initial Public Offerings (IPOs)’ recently.
The Anuradhapura branch of CSE had organised the initiative to set up an educated and informed investor base. NDB Investment Bank is the resource partner for the program and the initial event attracted over 150 participants along with a remarkable feedback. The participants engaged in a discussion and a Question & Answer session on elements concerning an investor when subscribing for an IPO.
Assistant Manager of the Listing Department at CSE, Kassapa Weerasekara, Vice President of Corporate Advisory at NDB Investment Bank, Sujani Perera and , Manager of Corporate Advisory at NDB Investment Bank, Charith Udugama shared insight on the said topic.
The program elaborated on aspects that investors should be focusing on when they invest in an IPO and how the investors can identify whether a specific IP is ideal for them. The program covered the concept of IPOs, how companies and investors benefit from IPOs and how investors could maximize their returns by properly evaluating the IPO prospectus.
Speakers from NDB Investment Bank elaborated on reading a Prospectus and the importance of understanding the Prospectus of a company before subscribing to an IPO. It was suggested that it is adequate to pay careful attention to the current financial stability of the company, its prospective goals, management processes and fundamentals of corporate governance.
They further illustrated how these are comparative suggestions based on many aspects and not recommendations.