BSEC to start approval process for pending IPOs shortly

Dhaka,  Wed,  23 August 2017
Published : 08 Jul 2017, 21:23:12
printer

BSEC to start approval process for pending IPOs shortly

FE Report


The securities' regulator will start the process of approval of the pending IPO (initial public offering) proposals shortly with the revised public issue rules that will come into effect after publishing gazette notification.    

Some IPOs which remain pending with the Bangladesh Securities and Exchange Commission (BSEC) did not get the green signal before approval of the revised rules to avoid complexities.

"The regulator has already approved revised public issue rules and is awaiting gazette notification on the rules. After getting the gazette notification, the regulator will approve pending IPOs gradually," said the BSEC official.

The securities regulator formulated new public issue rules in 2015 replacing previous one increasing due diligence requirements for the issuer companies.

Later the BSEC asked many companies, which previously submitted IPO proposals, to resubmit proposals as per new rules.

Following the regulatory instruction some companies then completed road shows and resubmitted IPO proposals in compliance with the new public issue rules.

Of those companies, only the ACME Laboratories was able to go public under the book building method in 2016.

In January, 2017 some allegations rose while conducting the bidding process of Aamra Networks.

Apart from this, the Dhaka Stock Exchange (DSE) urged the regulator to revise some provisions including quota for institutional investors in the IPOs.

On June 13, the securities regulator approved the amendment brought to the public issue rules.

On the same day, the BSEC approved the proposal of raising capital by Aamra Networks.

Meanwhile, the amount of raising capital by issuer companies declined significantly in the fiscal year (FY) 2016-17.

The securities regulator said the amount of raising capital by issuer companies declined in the just concluded FY as it was not possible for some companies to go public fulfilling additional requirements.

In the FY 2016-17, six companies and three mutual funds raised an aggregate amount of capital worth Tk 3.27 billion, which was 61 per cent or Tk 5.31 billion less than the amount of fund raised in the FY 2015-16, according to DSE information.

In the FY 2015-16, 11 securities, including two MFs, raised an aggregate amount capital worth Tk 8.58 billion.

mufazzal.fe@gmail.com
ADDRESS
Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.
Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049
Email : editor@thefinancialexpress-bd.com, fexpress68@gmail.com
Copyright © 2017. All rights reserved
Powered by : orangebdlogo
close