IPO: Rangpur Dairy & Food Products Ltd (Subscription Open: 11.09.11, Close: 15.09.11) ** Zahintex Industries Ltd (Subscription Open: 18.09.11, Close: 22.09.11) *** AB Bank first Mutual Fund (Subscription Open: 25.09.11, Close: 29.09.11)****Bangladesh Shipping Corporation - RPO (Subscription Open: 09.10.11, Close: 13.10.11)*****First Bangladesh Fixed Income Fund (Subscription Open: 16.10.11, Close: 20.10.11) Right Share:*Federal Insurance Company Ltd(Subscription Period 05.09.2011 to 03.10.2011) Ratio of Rights Issue 2R : 1, Issue Price BDT 10;** International Leasing & Financial Services Ltd(Subscription Period 06.09.2011 to 02.10.2011) Ratio of Rights Issue 1R : 1, Issue Price BDT 100;*** United Airways (BD) Ltd (Subscription Period 22.09.2011 to 13.10.2011) Ratio of Rights Issue 1R : 1,Issue Price BDT 15;****Bank Asia Ltd(Subscription Period 12.10.2011 to 10.11.2011) Ratio of Rights Issue 1R : 4, Issue Price BDT 100;*****Lafarge Surma Cement Ltd (Subscription Period 19.10.2011 to 13.11.2011) Ratio of Rights Issue 1R : 1, Issue Price BDT 100, Record date : 03.10.2011;******Premier Leasing & Finance Ltd (Subscription Period 26.10.2011 to 22.11.2011) Ratio of Rights Issue 1R : 1, Issue Price BDT 100, Record date : 10.10.2011;

Stock market faces IPO crunch

 Ibrahim Hossain Ovi

 The Securities and Exchange Commission (SEC) should take necessary steps to allow new initial public offerings (IPOs) to prevent a repeat of the credit crisis in the stock market, experts opined.
Not a single IPO received regulatory approval in last six months amid the volatile market situation.
The Dhaka Stock Exchange (DSE) saw listing of a total of 21 Initial Public Offerings (IPOs) worth Tk 29.74 billion in 2010, which is up by 28.49 per cent over the previous year’s value. In 2009, a total of 18 IPOs worth Tk 23.15 billion hit the market, according to DSE statistics. Of the total value of new listing, Tk 12.22 billion was collected through IPOs and the rest Tk 17.52 billion came through sponsors, which was Tk 3.08 billion higher than that of the previous year.
Ten mutual funds worth Tk 13.30 billion were listed on the DSE in 2010 while seven mutual funds worth Tk 6.65 billion entered into the market in 2009.The government suspended book building method in the market as the manipulators used the method as a tool for manipulation.
The stock market witnessed a massive fall recently mainly due to the failure of the regulatory body, dearth of new shares, denomination of face value, excessive investment of commercial banks and wrong monetary policy by the central bank, the Ibrahim Khaled probe body pointed out in its report submitted on April 7 this year.
The government formed the four-member probe committee headed by Krishi Bank chairman Khondker Ibrahim Khaled to investigate the recent market scam.
“One of the main reasons behind the market debacle was the lack of shares supply and the incident may repeat if the SEC takes more time to amend the IPO rules and bring new companies soon,” Salahuddin Ahmed Khan, former CEO of DSE said.
He also urged the regulatory body to scrutinize the financial statement of companies to ensure that those are not fabricated.“If the market regulator fails to formulate laws and bring new companies to the bourses, the market would be heated further as the investors are entering into the market gradually being inspired by the restructuring of the SEC,” Akter H Sannamat, a market analyst, said.“Government can introduce tax holiday in the upcoming budget for the fiscal 2011-12 to attract new companies to meet the increased credit demand on the market,” DSE president Shakil Rizvi said.
The market regulator is working hard for the restructuring, so that it can start approving IPOs soon. Unless it will lead the market to severe scarcity in supply side constraints, SEC chairman M Khairul Hossain said.
We will work hard to make the market vibrant and transparent to protect the investors’ interest, he added.The market watchdog should review the pending IPOs considering the plight of small investors, so that no share goes overpriced, said Mahmood Osman Imam, who teaches finance at Dhaka University.
Currently, more than twenty companies are waiting for the SEC’s approval to float IPOs, as per DSE webpage. The companies are ---Shurwid Industries Ltd, Bangladesh Shipping Corporation (BSC), Central Depository Bangladesh Limited (CDBL),STS Holdings Ltd (Apollo Hospitals Dhaka), GBB Power Ltd, Rangpur Dairy & Food Products Ltd, Meghna Insurance Company Ltd, Padma Islami Life Insurance Ltd, Bangladesh National Insurance Company Ltd and Janata Bank Limited, KYCR Coil Industries Limited, Summit Shipping Limited, Golden Harvest Agro Industries Limited, Orion Pharma Limited, Far East Knitting & Dyeing Industries Limited, Ananda Shipyard & Slipw ays Limited, GMG Airlines Limited, PHP Float Glass Industries Limited, Keya Cotton Mills Limited and Navana Real Estate Limited.
Source: Daily-sun.

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