Business
Three listed companies adopting share split strategy to boost liquidity & share price
Each existing EB Creasy share to be split into 100
Three companies listed on the Colombo Stock Exchange have announced decisions to subdivide their existing issued shares with no change in their stated capital in what is considered a measure intended, in the view of brokers and analysts, to increase the market liquidity of their shares with prospects to increase their price post-subdivision.
Among those companies that has announced subdivision of shares is old-established EB Creasy and Co. PLC, a member of the Colombo Fort Land and Buildings group, where a subdivision of each existing share into 100 new shares is pending.
The other two companies where subdivisions are pending are CIC Holdings PLC where a subdivision of each existing share into four has been announced and Lanka Aluminium Industries PLC where each existing share would be split into five.
Although there have been share splits since the new Company law came into effect on 2007, brokers and analysts could not recall a share split as big as what is proposed by EB Creasy which concluded its last Annual General Meeting for the year ended Mar. 31, 2020, on Dec. 30. A dividend of Rs. 18 per share (pre-share split) was adopted.
“Given that the company’s issued capital (stated capital is what now applies) was small, the Creasy share which is seldom traded has commanded a very high price on the trading floor of the CSE,” a broker said.
It last traded a few days ago between Rs. 3,150 and Rs. 3,070 with 506 shares changing hands in 34 trades. Its par value per share was Rs. 10 when par values applied. That concept went out with the introduction of state capital under the new company law.
Brokers and analysts said that there is a push-up factor possible in share splits but this has not always worked out.
“Consider an example of a company whose share is trading at Rs. 50 when a split of two new shares for each existing share is announced. Theoretically each new share should then be worth Rs. 25 but it doesn’t always work out that way, depending on market conditions. Shareholders always hope for a favourable movement from such measures,” a broker said.
CIC Holdings which has two classes of shares, voting and non-voting, will divide each existing share into four. An Extraordinary General Meeting has been called for Jan. 5 to secure shareholder approval for the proposed measure. The subdivision will apply to both voting and non-voting shares.
The CIC voting share last traded on the CSE between Rs. 184.90 and Rs. 182 closing at Rs. 182.30 with 57,601 shares transacted in 53 trades. The company paid two interim dividends of one rupee each for the financial year ended Mar. 31, 2020.
At Lanka Aluminium, each existing share will be split into five. Its share last traded at a range of Rs. 112.70 to Rs. 113.30 closing at Rs. 112.70 with 71,059 shares transacted in 119 trades. The company paid a first and final dividend of one rupee for the last financial year.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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