Tuesday, May 21, 2024

Section

বাংলা
Dhaka Tribune

IPOs surge in post-2020 rebound

Fundraising applications received in the main board have exceeded the Tk1,100 crore mark while the five SME board companies have raised Tk60.5 crore

Update : 14 Feb 2022, 03:08 PM

Initial public offerings (IPOs) gained traction at the bourses this year, aided by a vibrant bull market, with a total of 24 issues having raised funds from the primary market. 

Of these 14 are in the main board, five in the small-cap (SME) market board, and five are in the debt board, according to essbangladesh.com.

Fundraising applications received in the main board have exceeded the Tk1,100 crore mark while the five SME board companies have raised Tk60.5 crore, data shows. 

In the debt board, Beximco’s green Sukuk bond alone raised a total of Tk3,000 crore, combining both public and private raising, while the remaining four bonds raised a total of Tk200 crore during the year from the general public. 

“This year is perhaps the first time we have seen a genuine effort at strengthening the bond market in the country,” said Sayadur Rahman, the managing director of EBL Securities Limited.

He added that the pandemic slowed down the stock market activities earlier in the year, but slowly the market got back on its feet, and so, revived a surge in IPOs. 

“This year we have seen a mix in the market. The new BSEC committee has taken several effective steps to overcome the losses of Covid-19. As a result, the market slowed down at the beginning of the year, but later it began to grow,” he explained. 

But, Rahman said, the BSEC needs to focus on ensuring the quality of IPOs, controlling the transactions of Z category shares, transparency of BO accounts and financial transparency of listed companies. 

The formation of the SME platform is one of the best decisions of the year by the Bangladesh Securities and Exchange Commission (BSEC), echoed Shakil Rizvi, a director of the Dhaka Stock Exchange (DSE).

“I believe this will play a very important role in the years to come,” he added. 

However, there is no alternative to the long-term benefits that can be obtained by publicly listing large and reputed companies, he further said, hinting at increasing incentives for such companies for luring them to the stock market, including further concessions on taxes and easing the legal framework.

Top Brokers

About

Popular Links

x