DSE needs to entice more PLCs to go public: Aziz

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FE Report
Finance and planning adviser AB Mirza Azizul Islam Monday advised the Dhaka Stock Exchange (DSE) to encourage the non-listed public limited companies to go public.
"Only off-loading of government-owned shares in oil, telephone and other entities will not help the market overcome the crisis of quality shares. There should be concerted efforts from all quarters, specially from the DSE, to entice the private sector entrepreneurs to float their shares in the stock market," Mirza Aziz said while opening the 'DSE Training Academy' in the city.
He regretted that most family-owned private companies in Bangladesh lacked the vision to expand, thus depriving the general investors of investment opportunities.
"Unfortunately our private sector is not in tune with the global standard to expand their business although the most cost-effective way is to float shares in the stock market," said Mirza Aziz, who was the chairman of Securities and Exchange Commission (SEC) until February 2006.
He said the DSE should arrange awareness-creating programmes not only for investors but also for issuers.
"Despite having a 10 per cent tax differential, a large number of public limited companies still remains outside the stock market," the finance adviser said.
Chaired by DSE president Md Abdullah Bokhari, the programme was also addressed by SEC chairman Faruq Ahmad Siddiqi, DSE senior vice president Ahmad Rashid Lali, DSE chief executive officer Salahuddin Ahmed Khan, managing director of AB Bank Kaiser A Chowdhury and president of the Economic Reporters' Forum (ERF) Zakaria Kajal.
The finance adviser in his speech also asked the DSE to incorporate integrity and ethics in the curriculum of the newly-established 'training academy'.
The adviser said the government is working to offload shares of oil companies, state-owned Bangladesh Telegraph and Telephone Board (BTTB), Titas Gas and securitisation of Jamuna Multi-Purpose Bridge Authority.
"Our move will definitely help end the present crisis of quality shares to some extent," he said.
SEC chairman Faruq Ahmad Siddiqi said prices of some of the issues are now over-valued because investors does not have a list wide enough to choose from.
"The mismatch between demand and supply in the stock market has been affecting the market but we hope the situation will improve after the floatation of shares by new companies under energy and telecommunication sectors," the SEC chief said.
He said the scenario in the stock market will change within next 3-4 years as more and more companies are becoming public.
He hoped that the newly-established DSE Training Academy will play an important role to create skilled human resource in the field of stock market.
DSE senior vice president (SVP) Ahmad Rashid Lali said the bourse is working to introduce book-building method in the primary market and also a derivative market.
"The book-building method for IPOs, hopefully, will be completed within the next three months," Ahmad Rashid said.