Fingers pointed at greedy investment bankers, brokers for public losing confidence in IPOS
The investment banks and stockbrokers came under fire yesterday by the industry experts for their greed and inaction when dealing with initial public offerings (IPOS), which has led to the deterioration of the capital market, since the public has lost heavily when investing in IPOS.
Candor Equities Limited Group Ceo/director Ravi Abeysuriya, who is also Immediate Past Chairman of the Colombo Stock Brokers’ Association, said that investment banks are placing higher valuations on IPOS to earn higher fees from the funds collected through the IPO.
“The companies were so greedy; they also got the investment banks in. It’s very easy. Since the investment banks are being paid by the issuers to get these higher valuations and the public subscribed for them and they end up losing money because in the market the prices have come down,” he said, speaking at the sixth Capital Market Conference organised by UTO Edu Consult, yesterday.