IPOs back in the game

The stock market listings are expected to come back with a bang after the lull caused by the Covid-19 pandemic in the past one and a half years.

As the coronavirus spread in March 2020, many shelved their plans to go public and rushed to lay off their operations.

So far, as many as 11 initial public offerings (IPOs) plan to raise Tk 1,177 crore, the highest amount in recent months, according to issue managers. More IPOs are on the way, he said.

“As the impact of the pandemic peters out, the entrepreneurs rush for listings for the expansion,” said an issue manager who remains busy with several IPOs.

As the market has bounced back, the issue managers are preparing to file the IPOs for approval to the Bangladesh Securities and Exchange Commission (BSEC) this month. Of the firms, seven companies--- Global Islami Bank, NRB Bank, Midland Bank, Meghna Insurance Company, Subra Systems, and Synesis IT Limited--are expected to raise about Tk 676 crore under the fixed price method.

And remaining four companies--- Asiatic Laboratories and Islam Oxygen, JMI Hospital Requisite Manufacturing, and Omera Petroleum Limited— plan to raise more than Tk 501 crore under the book-building method.

“As the pandemic seemingly ends, many companies are planning to list. However, it will take time for them to hit the market after completing formalities,” AFC Capital CEO Mahbub H Mazumdar told The Business Post.

Star Adhesives Limited, a concern of Partex Group, plans to raise Tk 5 crore through a qualified investor offer (QIO). Global Islami Bank Limited (formerly NRB Global Bank Limited) plans to raise Tk 425 crore under the fixed price method.

The NRB Bank plans to raise approximately Tk 100 crore from the capital market under the fixed price method.

Another fourth-generation private bank, Midland Bank has obtained approval from Bangladesh Bank to raise Tk 70 crore from the stock market through IPO as per licencing terms.

Meghna Insurance Company Limited, a non-life insurance company, seeks to raise funds through the IPO. The insurer recently filed its IPO plan to the BSEC to raise Tk 16 crore aiming to invest in fixed deposit, share market, and treasury bonds.

Subra Systems Limited plans to raise Tk 30 crore under the fixed price method. Last year, the IT company filed its IPO plan to the stock market regulator aiming to expand the business.

Synesis IT Limited is eager to raise Tk 30 crore under the fixed price method.

Asiatic Laboratories Limited seeks to raise Tk 95 crore under the book building method. It will arrange a roadshow on October 24 this year.

Islam Oxygen Limited also wants to raise Tk 93 crore. The company will hold a roadshow in Dhaka on October 25.

JMI Hospital Requisite Manufacturing, a sister concern of JMI Group, submitted its IPO proposal to the regulator to raise funds worth Tk 75 crore.

Omera Petroleum Limited, the leading company in the country’s LPG sector, plans to use the book building method to raise Tk 238.43 crore.