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Message: <blockquote data-quote="chk99" data-source="post: 9997434" data-attributes="member: 302144">         <a href="http://print.dailymirror.lk/business/127-local/42260-expolanka-pre-ipo-sell-down-creates-controversy.html" target="_blank">         Expolanka pre-IPO sell down creates controversy    </a>                                       Thursday, 28 April 2011 00:00                                                          By Indika Sakalasooriya and  Jithendra Antonio     <img src="http://print.dailymirror.lk/images/Chart-02%281%29.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="" />Analysts  and stock brokerage fraternity in the country were seen little  disturbed and distressed about the pre-IPO sell down of the Expolanka  Initial Public Offering (IPO), at a significantly low price compared to  the offer price.     According to the prospectus of the Expolanka IPO, the sell down of each  share by the owners of the company has taken place at Rs.6, while  through the IPO, public is offered Rs. 14 per share.     “The question that has been bugging many is, by subscribing to this  share at the IPO, aren’t they letting  those who bought shares by way of  private placements and sell downs at lesser prices (than the IPO  price), make money?” a stock market analyst opined on the grounds of  anonymity.     He also said that serious doubts have surfaced over the real share  value, in the backdrop of company owners selling a considerable part of  their stake at Rs.6 per share.     “What we should notice is that, the offer price is 133 percent higher than the sell down price”     The explanation given for the sell down at Rs.6 is, it was done late  last year before latest Expolanka financial results came into light.     “There’s no significant difference between the pricing in September  2010 and the pricing now,” Krishan Balendra, President, Corporate  Finance & Group Strategy of John Keells Holdings was quoted as  saying to Lanka Business Online recently.     However, according to Capital Trust Director Research, Sarath  Rajapakse, there is going to be a massacre of small investors once the  Expolanka shares hit the market.      “Well the IPO will be oversubscribed, but if the directors have sold  down shares to private investors at Rs.6 per share, it means they are  going to sell them after IPO anyway,” added Rajapakse.     At the presentation made to the stock brokering community on Tuesday,  the managers to the issue John Keells Capital had refused to give any  assurance as to whether the private investors will sell at the expense  of small retailers, once Expolanka shares enter the CSE trade floor.     Krishan Balendra told Mirror Business at the official launch of the IPO  on Tuesday that Expolanka’s directors have sold their holdings to  private investors and that does not count as a private placement.      “SEC’s “Lock In Rule” has no relevance to this situation” Balendra added.     Meanwhile, Head of Research at CT Smith Stockbrokers Talaal Maruzook  highlighted that Expolanka shares is still attractive, given the fact  that Expolanka shares are offered at a discounted price compared to  other companies that are listed on the CSE board, under the Diversified  Holdings Sector. However, two other companies listed under Diversified  Holdings including Richard Pieris (RICH) and Dunamis Capital (CSEC) is  also trading at less than Rs.14 levels as per market data.      Expolanka Holdings is to raise Rs. 2.4 billion by issuing 172 million  ordinary voting shares at Rs. 14 each, with the IPO opening on May 12.[CODE]Source:http://print.dailymirror.lk/business/127-local/42260-expolanka-pre-ipo-sell-down-creates-controversy.html[/CODE]Me seen eka mokadda??<img src="/styles/default/xenforo/smilies/default/confused.gif"  class="smilie" loading="lazy" alt=":confused:" title="Confused    :confused:" data-shortname=":confused:" /><img src="/styles/default/xenforo/smilies/default/confused.gif"  class="smilie" loading="lazy" alt=":confused:" title="Confused    :confused:" data-shortname=":confused:" /><img src="/styles/default/xenforo/smilies/default/confused.gif"  class="smilie" loading="lazy" alt=":confused:" title="Confused    :confused:" data-shortname=":confused:" /><img src="/styles/default/xenforo/smilies/default/confused.gif"  class="smilie" loading="lazy" alt=":confused:" title="Confused    :confused:" data-shortname=":confused:" /></blockquote>

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