Initial public offerings (IPOs) at the Dhaka Stock Exchange have declined in FY23 compared to previous two fiscal years, owing to lengthy process of the IPOs and low market volume.
In FY23, the number of IPO’s stood at 9 whereas the number was 15 in both FY22 and FY21, according to a report titled "DSE Annual Report FY 2022-23."
The report said that one mutual fund, one perpetual bond and seven securities were listed through IPO in FY23.
Navana Pharmaceuticals, Chartered Life Insurance, ICBAMCLCMSF Golden Jubli MF, Global Islami Bank Ltd, Midland Bank, Trust Islami Life Insurance, Dhaka Bank Perpetual Bond, Islami Commercial Insurance Co Ltd and AB Bank Perpetual Bond were newly listed in FY23.
The report showed that the issue size of the IPOs also declined sharply to Tk678.44 crore in FY23 compared to the previous two years.
Earlier in FY22, the issue size of IPOs were Tk4,848.42 crore and in FY21, Tk1,285.87 crore.
Besides, the number of total volume has decreased by 58.06% and remains at 3,477.62 crore in FY23 compared to the previous years when the volume was 8,282.74 crore in FY22 and 8,357.33 in FY21.
In July 2022, the Bangladesh Securities and Exchange Commission imposed the floor price restriction on all companies to prevent any excessive fall in stock prices amid economic worries.