SDB Bank sets capital market milestone | Sunday Observer

SDB Bank sets capital market milestone

27 December, 2020
Thilak Piyadigama
Thilak Piyadigama

SDB bank which raised Rs. 1.5 billion through a rights issue, created capital market history by becoming the first Colombo Stock Exchange-listed entity to successfully host and complete a rights issue digitally, the event was recognised as the first local digital share subscription to be oversubscribed.

In early November, the bank informed its shareholders of a decision to facilitate the application of their rights entitlement plus additional shares entirely digitally, in coordination with the Colombo Stock Exchange (CSE).?

Separate systems were set up for the process, allowing for online application through the Central Depository System (CDS) for CDS account holders and via a dedicated online system developed by SDB bank for non-CDS account holders.?

SDB bank’s CEO Thilak Piyadigama said, “The bank’s recently completed digital rights issue being a resounding success highlights the forward-thinking nature of SDB bank’s shareholders, and it strengthens our commitment to deliver even greater financial and social value to all our stakeholders.”

The shareholders responded to the notice, leading to the distinction of the first local digital rights issue to be oversubscribed.

The many firsts set by SDB bank in digitally administering their latest rights issue is heartening on several counts.

The positive response of shareholders to the new digital model for capital markets introduced by SDB bank bodes well for the future, and it sets a benchmark for the conducting of capital market activities in Sri Lanka in an efficient, timely and convenient manner.