The Bangladesh Securities and Exchange Commission (BSEC) has approved only three initial public offerings since the start of 2024.
Of the three companies, Craftsman Footwear and Accessories Limited and Web Coats PLC were listed on the small and medium entrepreneurs’ platform of the Dhaka Stock Exchange and the remaining one, Techno Drugs Limited, was listed on the main platform of the bourse after issuing their respective IPOs, as per BSEC data.
Market operators said the country’s stock market was struggling to attract well-performing companies due to complicated rules, extra compliance requirements and other hassles.
A lengthy process, easy access to bank loans, and oversight from multiple regulatory bodies have made it less appealing for companies to join the stock market, they said.
Regulatory bodies have delayed efforts to understand and fix these issues, making it hard for investors to find top companies to invest in, they said.
A total of four companies issued IPO in 2023 while the number was nine in the previous year.
The Dhaka Stock Exchange has been in a bearish vibe since the start of the year.
DSEX, the key index of the DSE, lost 1,043.47 points from January 1 till date.
Merchant bankers submitted to the DSE proposals, including significant changes to public issue rules and relevant notifications to attract quality IPOs to the capital market in June.
Rezaul Karim, spokesperson and executive director of the BSEC, said that the commission was trying to encourage companies with good fundamentals to go public and took several initiatives for it.