16 companies plan to raise over Tk 1,100cr 

A total of 16 companies have planned to raise approximately Tk 1,147.26 crore from the capital market by offloading shares through initial public offerings (IPOs) to invest in business expansion.

Of the firms, 11 are expected to raise Tk 759.26 crore by issuing shares at Tk 10 each, which is called the fixed price method. The five others would raise Tk 388 crore under the book-building method.

Some of the companies are planning to file the IPOs for approval by the Bangladesh Securities and Exchange Commission (BSEC). Besides, the issue managers are preparing to file the IPOs for approval earlier.

One of the firms, Thai Foils & Polymer Industries Limited, a concern of Al-Mostafa Group, has decided to raise approximately Tk 120 crore through an IPO under the book building method.

Mostofa Kamal, Al-Mostafa Group managing director, said, “The listing is timely for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities.” 

“Along with Green Delta Capital Limited, we hope to perform well, which will have a positive impact on our capital market as well as on our economy,” he said. 

Another three companies are waiting for approval by the BSEC to raise funds under the book-building method. 

Asiatic Laboratories Limited seeks to raise Tk 95 crore under the book-building method. It arranged a roadshow on October 24 last year. 

Islam Oxygen Limited wants to raise Tk 93 crore. The company held a roadshow in Dhaka last year and also applied to the BSEC.

Entrepreneurs said tedious processes and cumbersome rules have discouraged big companies from listing on the stock market. 

It takes a long time to raise funds through an IPO. But funds can be obtained quickly from banks. For this reason, many entrepreneurs choose banks instead of the stock market to raise capital to expand their business on time.

Against this backdrop, entrepreneurs urged the securities market regulator and stock exchanges to simplify the listing rules to attract big companies to the market.

In response to their demand, BSEC Chairman Prof Shibli Rubayat Ul Islam said the regulator is ready to approve an IPO within two weeks if all the documents required for listing are filed.

“We are always business-friendly. It is possible to approve IPOs in two weeks once the proper and accurate documents are submitted,” he said.

Another company, Navana Pharmaceuticals, will begin the process of discovering the cut-off price of its shares under the book-building method, aiming to raise Tk 75 crore. 

Besides, Midland Bank wants to raise Tk 70 crore, Islami Commercial Insurance Tk 20.26 crore, B Brothers Garments Tk 50 crore,  Parkway Packaging Tk 30 crore, Trust Islami Life Tk 16 crore, Chartered Life Insurance Tk 15 crore, Sikder Insurance Tk 16 crore, and  NRB Bank Tk 100 crore under the fixed price method. The stock market regulator on June 15 approved Global Islami Bank Limited to raise Tk 425 crore under the fixed price method. 

The bank will float 42.4 crore shares at an issue price of Tk 10 each. The proceeds would be used to finance SMEs, invest in government securities and the stock market, and cover IPO expenses.

Three companies are waiting for approval from the BSEC to be listed under the SME platform. They are Al-Madina Pharma, Subra Systems, and Index Accessories Limited. Al-Madina Pharmaceuticals will raise Tk 5 crore under the book-building method. The two others want to raise money through qualified investor offers under the fixed price method – Subra Systems Tk 12 crore and Index Accessories Tk 5 crore.

Earlier, in February this year, the BSEC wrote to the Bangladesh Bank to push five new banks to go public. The banks are Meghna Bank, Midland Bank, Modhumati Bank, NRB Bank, and Shimanto Bank.

Thirteen companies raised Tk 1,653.86 crore through IPOs in 2021, the highest in nine years. Tk 985 crore was raised through eight IPOs in 2020 and Tk 1,842 crore in 2012, according to the BSEC.

Meanwhile, in the just-concluded fiscal year 2021–22, eight companies got listed on the bourses and raised Tk 699.36 crore through IPOs while 16 listed companies raised Tk 1,610.6 crore through IPOs in the previous fiscal year.