Photo : Collected
A dozen companies are coming to the capital market for business expansion, bank loan repayment, and company reform. Among the companies, 10 are entering the market through the fixed price method of initial public offering (IPO). Two companies named Borak Real Estate Limited and Omera Petroleum Limited are coming to the market in book building method. Altogether, the 12 companies will collect Tk 930 crore from the market.
The companies have already applied to the regulatory body Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), and Chittagong Stock Exchange (CSE) to enter the market. The institutions have verified the applications. A few companies are awaiting IPO approval. This information is known from DSE sources.
The companies applying for the IPO are insurance companies Zenith Islami Life Insurance Limited and Protective Islami Life Insurance Limited. Other sectors include Dhakathai Alcomaxx PLC, Digicon Technologies PLC, Eshana NonWoven Fabrics (ind) Ltd, Alliance Finance PLC, Anik Trims Ltd. B Brothers Garments Co. Limited, Three Angle Marine Limited, and Rhymer Chemical Industries Limited.
DSE Chairman Prof Dr Hafiz Md Hasan Babu said, “We are committed to bring good companies to the capital market. We encourage entrepreneurs to list good companies for the sake of the country's economy.” Executive Director and Spokesperson of BSEC Mohammad Rezaul Karim told The Daily Messenger that the IPO will be approved quickly if everything is found correct after checking the financial reports of the companies.
Former caretaker government's finance advisor and eminent economist AB Mirza Azizul Islam said that more and more companies should be approved for IPO for the expansion of the country and the country's economy. Only then will the contribution of the capital market to the economy increase. “But the real picture is that the capital market is not able to behave properly. The country's economy needed more capital market contribution. But because it is easy to take bank loans, entrepreneurs are not facing this market.”
He also said, “As a result, the capital market of the country has not yet reached the desired goal. The process of taking long-term loans from banks should be stopped for the development of the capital market.”
Among the companies, Zenith Islami Life authorities want to collect Tk 15 crore from the market at a face value of Tk 10. Protective Islami Life, a company in the same sector, will issue 1.5 million shares and collect Tk 15 crore from the market. Out of this, 22 lakh 50 thousand shares are held by the company's employees.
Dhakathai Alcomaxx PLC will issue 3 crore shares at a face value of Tk 10 and raise Tk 30 crore. Digicon Technologies company will also issue 3 crore shares worth Tk 10 and raise Tk 30 crore from the market. Out of this, 45,000 shares are held by employees of the company.
Eshana Nonwoven Fabrics, a textile company, will issue 30 million shares and raise Tk 30 crore. Alliance Finance has applied to raise Tk 30 crore, Anik Trims Limited wants to raise Tk 30 crore from the capital market through IPO. B.Brothers Garments Co. Limited will issue 5 crore shares and raise Tk 50 crore from the market, Three Angle Marine Limited will collect Tk 32 crore from the market and Rhymer Chemical Industries Limited has applied to raise Tk 30 crore from the market by issuing 3 crore shares. All together 10 companies want to withdraw a total of Tk 292 crore from the market. With this money, the company will withdraw money from the market to repay the bank loan, expand the business and renovate the factory.
On the other hand, housing sector company Borak Real Estate Limited wants to raise capital of Tk 400 crore from the market through IPO book building method. Also, Omera Petroleum Limited wants to raise Tk 238 crore in IPO through premium. All together, 12 companies want to raise a total of Tk 930 crore through book building and fix price method.
When asked about this, the chief executive officer of the insurance company Zenith Islami Life Insurance SM Nuruzzaman told The Daily Messenger, "We have planned to go to the capital market a few years ago. However, due to Covid-19, that plan could not be implemented. However, the company has already fulfilled the conditions set by the commission for the IPO and is ready to achieve maximum compliance by entering the capital market.
The chief executive of the insurance company SM Nuruzzaman expressed the hope that all the activities of listing in the capital market will be completed very soon and it will have a positive impact on the financial condition of Zenith Islami Life Insurance Limited. Zenith Islami Life wants to raise Tk 15 crore from capital market through IPO. With this money the company will expand the business.
Managing Director (MD) of Chittagong Stock Exchange M Saifur Rahman Majumder said, “Our country is one of the fastest growing economies in the world. The contribution of capital market to the GDP of our country is less as compared to neighboring countries. Currently, the contribution of capital market to GDP is less than 20 per cent. We have the opportunity to increase it. Which will simultaneously accelerate the economic development of the country.”
Messenger/Fameema
