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10 firms line up for capital market entry
Eight fixed-price applicants aim to raise Tk788cr; two others pursue book-building IPOs
Ten companies from different sectors have submitted prospectuses seeking to list on the capital market, signalling renewed interest in initial public offerings (IPOs) following recent changes to listing rules.
A review of the prospectuses shows that eight companies seeking listing under the fixed-price method aim to raise a combined Tk788 crore. Two other companies – Borak Real Estate and Omera Petroleum – are pursuing IPOs through the book-building method.
According to Dhaka Stock Exchange (DSE) data and company prospectuses, the fixed-price applicants include Zenith Islami Life Insurance, Digicon Technologies PLC, Protective Islami Life Insurance, Alliance Finance PLC, Anik Trims, B. Brothers Garments Company, Three Angle Marine and Rhymer Chemical Industries.
The two book-building applicants are Borak Real Estate and Omera Petroleum, whose proposed IPOs are separate from the Tk788 crore fixed-price total.
Borak had earlier planned to raise around Tk400 crore, while Omera Petroleum has applied to raise Tk238 crore.
The companies represent a diverse range of sectors, including life insurance, non-bank financial institutions (NBFIs), information technology, garments, marine, chemicals, real estate and energy.
DSE sources said the Bangladesh Securities and Exchange Commission (BSEC) has recently introduced new policies for both IPO methods under the Public Offer of Equity Securities Rules, prompting renewed interest among companies seeking to enter the capital market.
Among the fixed-price applicants, Zenith Islami Life Insurance plans to raise Tk15 crore. The insurer intends to invest part of the proceeds in fixed deposits (FDRs) and government treasury bonds, while the remainder will be used for capital market investment and IPO-related expenses. The funds are expected to be utilised within 12 months of receiving the proceeds.
Digicon Technologies PLC plans to raise Tk30 crore. According to its prospectus, Tk18.55 crore will be used for capital expenditure related to business expansion, Tk5.50 crore for repayment of long-term loans, Tk4.50 crore for working capital and Tk1.45 crore for IPO expenses.
Protective Islami Life Insurance also plans to raise Tk15 crore. The proceeds will be invested in the capital market, fixed-income securities and FDRs with banks and NBFIs, while a portion will be used to cover IPO-related expenses.
Rhymer Chemical Industries plans to raise Tk30 crore, with the proceeds earmarked for machinery and equipment, building construction, civil works and IPO expenses. The company plans to utilise the funds within 24 months.
Anik Trims also plans to raise Tk30 crore. The company will use the proceeds for machinery, building construction, civil works and IPO expenses, with the funds scheduled to be utilised within 21 months.
NBFI Alliance Finance PLC plans to raise Tk30 crore. The proceeds will be invested in its core business activities, including loans and advances, while a portion will be used to cover IPO expenses. UCB Investment is acting as the issue manager.
B. Brothers Garments Company and Three Angle Marine are also seeking listing under the fixed-price method.
Their proposed IPO amounts are included in the combined Tk788 crore target of the eight fixed-price applicants.
Under the book-building method, Borak Real Estate and Omera Petroleum have initiated the listing process. Borak had earlier planned to raise around Tk400 crore through an IPO to finance hotel construction and repay loans, while Omera Petroleum has applied to raise Tk238 crore from the capital market.
Under the revised framework, the issuer and issue manager will determine the share price under the fixed-price method using prescribed valuation methods. Under book building, the cut-off price will be determined through bids from eligible investors.
The framework also provides for the restoration of the lottery system, a minimum paid-up capital of Tk30 crore, post-IPO capital of at least Tk50 crore and a specific quota for general investors.
BSEC spokesperson Abul Kalam said the commission had finalised several measures to facilitate the listing of new companies.
“The revised measures provide a clearer framework for companies seeking to enter the capital market. The direct listing policy is also nearing completion, which could bring government-owned, multinational and well-performing domestic companies into the listing framework,” he said.
Kalam said several companies on the current list had originally applied during the tenure of the previous commission and were later asked to submit fresh applications following scrutiny.
Zenith Islami Life Insurance CEO S M Nuruzzaman said the insurer had expected to enter the capital market earlier.
“We applied during the previous commission’s tenure, but the process was delayed by some complications. We have now submitted a fresh application to complete the listing process,” he said.