June 20, 2019
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    Mahaweli Coconut Plantations begins trading at CSE

    June 04, 2019

    The Mahaweli Coconut Plantations LTD (MCPL) began trading on Colombo Stock Exchange (CSE) yesterday, listing 33 million shares at a strike price of Rs.13 a share.Founded in 1996, the company has profited well. “Our shareholders had been with us for over 20 years and this is great opportunity for them to sell or transfer,” said Managing Director, MCPL, Felix Fernandopulle. He also said that the listing would allow original investors, majority been desiccated coconut millers, to sell their shares if they wish to.

    Having planted about 95,000 coconut plants they were able to obtain a production of 90,900 coconuts per hectare last year where as the national average had been about 5,000-5,500 coconuts per hectare. They have also planted about 25,000 teak plants which are also reaching the harvesting period. “Thus we can ensure a prosperous country in the future,” Fernandopulle added.

    Mahaweli Coconut Plantations LTD(CODE: MCPL) rang the market opening bell to commence trading on CSE at a special market opening ceremony organized to mark the company listing its shares on the CSE. The shares, which were listed by way of an equity introduction on the Diri-Savi board of the CSE has been classified under the ‘Plantations’ Sector. “Plantation is what gave birth to share trading in Sri Lanka,” said Chairman, CSE, Ray Abeywardena. In terms of the plantation sector this is the first real agriculture based coconut plantation that is been listed. The CSE has 20 listed plantation sector companies with a market capitalization of over Rs. 25 billion.

    Thus with the introduction listing of the MCPL, the market capitalization would be enhanced to about Rs. 425 million. Abeywardena also stated that this was the first listing nearly after 15 months. Listing of a company allows it to become more visible to the investing public which also would enhance their cooperate regulations and rules. This also allows a company to become more disclosure based and abide by the CSE rule and regulations of been a listed company.

    Located at Aralaganwila in the North Central province, the plantation spans 1,350 acres where water is supplied from the Mahaweli River. The MCPL was originated so as to address the shortage of coconut supply for the drastically increasing demand in the early 90s. Cutting down of coconut trees in the coconut triangle as a result of urbanization and increasing of population, officials and political leaders decided to grow coconuts in areas outside the coconut triangle. Thus it was finalized to cultivate coconut plantations in the North Central province which has an ample amount of sunlight and water from the Mahaweli River.

    Managing Director Felix Fernandopulle, Directors Prof. T.S.G Fonseka, M.A.C.H. Munaweera and the Senior Management represented Mahaweli Coconut Plantations LTD at the event. The CSE was represented by Chairman Ray Abeywardena, Director Shanil Fernando, CEO Rajeeva Bandaranaike and its Senior Management. Merchant Bank of Sri Lanka and Finance PLC, the managers to the introduction was represented by Chief Manager Lalangi Gonawardena and other senior representatives.

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