DSE market capitalization doubles in 10 months
Thursday, 8 November 2007
FE Report
Shares worth Tk 1.22 billion of seven companies that are in the pipeline are expected to be floated in the country's stock market within next few months.
The companies -- Jamuna Oil, Meghna Oil, Rupali Life Insurance, Delta Brac Housing, National Housing and Bangladesh Shilpa Rin Sangstha (BSRS) -- will float their shares, subject to final approval from the Securities and Exchange Commission (SEC).
Market operators said the IPOs are being floated in an effort to mop up capital from the stock market which is now witnessing unprecedented enthusiasm of investors.
The total market capitalisation of the DSE, country's main bourse, has already crossed $10 billion mark. It was below $5 billion in December, 2006.
Another company -- Conti- nental Insurance -- is set to begin its subscription November 18. The insurance company will float shares worth Tk 90 million with the face value of Tk 100 per share.
"We are hopeful that Jamuna Oil and Meghna Oil will be listed with the stock exchanges under the direct listing regulations by the end of next month (December)," a Dhaka Stock Exchange (DSE) source told the FE Wednesday.
Jamuna Oil and Meghna Oil will float shares worth Tk 135 million and Tk 120 million respectively.
"Both the companies were scheduled to be listed on the stock exchanges by the third week of this month (November), but the listing was deferred as the bourses sought some clarifications on the companies' financial statements," the DSE source said.
Meanwhile, Second ICB NRB Mutual Fund, First Security Bank, Lab Aid, GSP Finance, Industrial and Infrastructure Development Fund, Fareast Finance and Oman-Bangladesh Leasing will also go public by the end of June, 2008.
In another development, the chairman of Bangladesh Telecommunications Regulatory Commission (BTRC) will visit the DSE next week and hold a meeting with the directors of the bourse.
"We will discuss the ways and means on floating the telecom companies' shares with the BTRC in the meeting," a DSE source told the FE.
Telecom companies -- Grameenphone, Aktel and Banglalink -- have already shown their initial interest to go public.
The BSRS, a state-owned industrial financing company, is amending its memorandum and articles of association to offload shares worth Tk 200 million in the stock market.
The paid-up capital of BSRS has already been raised to Tk 1.0 billion.
A BSRS source said the BSRS has increased its paid-up capital by taking Tk 300 million from its reserve. The amount of total reserve fund of the BSRS was worth Tk 1.80 billion, he said.
"The government has given us three months time for offloading the BSRS shares. If everything goes well the formal trading of the shares will start from last part of the next month or early part of January next," the BSRS source said.
In September last, a three-member committee, formed to offload shares of BSRS, has recommended the government to raise its paid-up capital from the reserve fund before listing on the stock exchanges.
The committee comprises of Investment Corporation of Bangladesh (ICB) managing director Ziaul Haque Khandaker, BSRS managing director FRM Hafizul Islam and deputy secretary of the finance ministry M Kamrunnahar.
Shares worth Tk 1.22 billion of seven companies that are in the pipeline are expected to be floated in the country's stock market within next few months.
The companies -- Jamuna Oil, Meghna Oil, Rupali Life Insurance, Delta Brac Housing, National Housing and Bangladesh Shilpa Rin Sangstha (BSRS) -- will float their shares, subject to final approval from the Securities and Exchange Commission (SEC).
Market operators said the IPOs are being floated in an effort to mop up capital from the stock market which is now witnessing unprecedented enthusiasm of investors.
The total market capitalisation of the DSE, country's main bourse, has already crossed $10 billion mark. It was below $5 billion in December, 2006.
Another company -- Conti- nental Insurance -- is set to begin its subscription November 18. The insurance company will float shares worth Tk 90 million with the face value of Tk 100 per share.
"We are hopeful that Jamuna Oil and Meghna Oil will be listed with the stock exchanges under the direct listing regulations by the end of next month (December)," a Dhaka Stock Exchange (DSE) source told the FE Wednesday.
Jamuna Oil and Meghna Oil will float shares worth Tk 135 million and Tk 120 million respectively.
"Both the companies were scheduled to be listed on the stock exchanges by the third week of this month (November), but the listing was deferred as the bourses sought some clarifications on the companies' financial statements," the DSE source said.
Meanwhile, Second ICB NRB Mutual Fund, First Security Bank, Lab Aid, GSP Finance, Industrial and Infrastructure Development Fund, Fareast Finance and Oman-Bangladesh Leasing will also go public by the end of June, 2008.
In another development, the chairman of Bangladesh Telecommunications Regulatory Commission (BTRC) will visit the DSE next week and hold a meeting with the directors of the bourse.
"We will discuss the ways and means on floating the telecom companies' shares with the BTRC in the meeting," a DSE source told the FE.
Telecom companies -- Grameenphone, Aktel and Banglalink -- have already shown their initial interest to go public.
The BSRS, a state-owned industrial financing company, is amending its memorandum and articles of association to offload shares worth Tk 200 million in the stock market.
The paid-up capital of BSRS has already been raised to Tk 1.0 billion.
A BSRS source said the BSRS has increased its paid-up capital by taking Tk 300 million from its reserve. The amount of total reserve fund of the BSRS was worth Tk 1.80 billion, he said.
"The government has given us three months time for offloading the BSRS shares. If everything goes well the formal trading of the shares will start from last part of the next month or early part of January next," the BSRS source said.
In September last, a three-member committee, formed to offload shares of BSRS, has recommended the government to raise its paid-up capital from the reserve fund before listing on the stock exchanges.
The committee comprises of Investment Corporation of Bangladesh (ICB) managing director Ziaul Haque Khandaker, BSRS managing director FRM Hafizul Islam and deputy secretary of the finance ministry M Kamrunnahar.