JXG IPO seems interesting - Investing in Sri Lankas Stock Market - 28th March 2026

 

Hi, Its Day 2 of learning the CSE Market and the above image might shock you at the start. Basically if you buy a stock there is commision or a ask price.With my broker i believe its 1.2% which means the stocks should matrue atleast 1.2% to either break even or head to profits, which is fair I guess. I am investing in the long term and this is an opportunity to learn.




The JXG Group has announced their IPO, As a person learning I want to take risks to learn about the stock Market. My Investement advisor, told me not to treat it as gamlbling which i dont and will never do  so. I downloaded the prospectus and went through it. I found some interesting points and please go ahead and tell me if they are normal.

1.The JXG business is a family business as the man shareholders are the Schaffter Family, including Mr Prakash Schaffter (the duputy Chairman) who was a famous cricketer. Around 21.74% of the shares are the only floating shares which means the family business will start in the family( 78% of shares)

2.A deloitte valued the share at LKR 15.92 which means there is a cushion if i buy it at LKR 10 ( reminder that its still good with the commision i mentioned before)

3.They are in serious debt LKR 4.2 Billion in commercial papers as of December 2025. They mentioned that LKR 1 Billion will be used to reduce this debt.

What excites me:

1. The business has history since 1992, and they have subsidaries like Janashakthi Insurance and First Capital

2.The Divident history was released and it showed positive growth. Im a bit confused why 2025/2026 didnt have divident( my assumpition is its for the end of the year 2026)


3.The minimum investment is LKR 10,000 or 1000 Shares which is good for beginner investements like me.

What Pauses me:

1. THEY HAVE SERIOUS DEBT even with the IPO funds they are going to be around 3.2 Billion in debt.

2.Shares are locked to one family.( I asuume its normal in Sri lanka?)

3.The company's working capital is negative, they did address it in the prospectus.


Disclaimer: This is not financial advice, Its my amateur thoughts on the CSE Market

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