Private Placement

pdgsuranga · 1 Private Placement Fri Apr 22, 2011 10:39 am

pdgsuranga

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can you please advice me about private placement whether effect to expo lanka or not? because private placement is a big headache for IPO. why some company go to a private placements before IPO?

wmdcf · 2 Re: Private Placement Fri Apr 22, 2011 10:42 am

wmdcf

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http://forum.srilankaequity.com/t2882p20-expolanka-facts-from-prospectus-valuation

milanka · 3 Re: Private Placement Fri Apr 22, 2011 12:42 pm

milanka

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These may help.

1. http://forum.srilankaequity.com/t477-lock-in-rule-for-private-equity-by-sec

2. http://forum.srilankaequity.com/t2772-sec-one-year-lock-in-rule-and-impact-on-flch-expo

Gaja · 4 Re: Private Placement Fri Apr 22, 2011 12:59 pm

Gaja

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pdgsuranga wrote:can you please advice me about private placement whether effect to expo lanka or not? because private placement is a big headache for IPO. why some company go to a private placements before IPO?

Well i didn't see any Private Place Problem in this issue because based on the Prospectors of the Expo Lanka i think they didn't issue any shares with in the Last 2 years so the shares given to 3rd parties such as JKH, CINV ( which now they transfered to WAPO ), Lanka Strategic Investments Limited, Softlogic Holdings etc etc, i am not sure about the Prices at which they bought, but as per the information they bought sometimes back so i think that time market was no that active if i am not mistaken, another share which recently listed after Private Placement was the Union Bank but how many of us could have invested in the Union Bank if it came to the market without those capital infusion, also don't forget the fact those early capital infusion was help bank from going in to bankruptcy.

If i am not mistaken it appears all the Finance Companies which are going to be listed on the CSE during the year as per the CBSL requirement is by way of introduction.

Correct me if i am wrong
Appreciate the comments of the other members

mark · 5 Re: Private Placement Fri Apr 22, 2011 10:25 pm

mark

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http://forum.srilankaequity.com/t1723-free-lanka-capital-holdings-private-placement#11453

why they going for private placement?....

*Advantages
--companies get to control the process and work directly with veteran investors who have deep expertise in the company, its industry, and in understanding growth potential. That allows the management team to stay focused on core business objectives instead of managing a volatile public offering to jittery investors.

--A private placement may also enable a small business owner to hand-pick investors with compatible goals and interests. Since the investors are likely to be sophisticated business people, it may be possible for the company to structure more complex and confidential transactions. If the investors are themselves entrepreneurs, they may be able to offer valuable assistance to the company's management. Finally, unlike public stock offerings, private placements enable small businesses to maintain their private status.

--do not require the assistance of brokers or underwriters, they are considerably less expensive and time consuming.

*read this
http://www.oneminuteu.com/default.taf?page=content&id=2505