Seven companies and five mutual funds (MF) raised an aggregate amount of Tk 6.98 billion from the public in eight months (January-August) of the current calendar year.
The companies which raised funds through floating initial public offerings (IPO) are Dragon Sweater and Spinning, Doreen Power Generations and Systems, Bangladesh National Insurance Company, Evince Textiles, ACME Laboratories, Yeakin Polymer and Fortune Shoes.
Of them, seven companies raised Tk 5.83 billion through floating IPOs, while five mutual funds collected Tk 1.15 billion from the public.
Of the companies, Dragon Sweater and Spinning raised Tk 400 million, Doreen Power Generations and Systems Tk 580 million, including Tk 380 million as premium, Bangladesh National Insurance Company Tk 177 million, Evince Textiles Tk 170 million, ACME Laboratories above Tk 4.09 billion, including Tk 3.95 billion as premium, Yeakin Polymer Tk 200 million and Fortune Shoes raised Tk 220 million.
Meanwhile, Pacific Denims is waiting for raising funds through IPO. The Pacific Denims will float 75 million ordinary shares at an offer price of Tk 10 each under the fixed price method and raise funds of Tk 750 million.
Five mutual funds which collected fund are: Peninsula AMCL BDBL Unit Fund One, VIPB Accelerated Income Unit Fund, UFS-Padma Life Islamic Unit Fund, LankaBangla 1st Balanced Unit Fund and ATC Shariah Unit Fund.
The Peninsula AMCL BDBL Unit Fund One raised Tk 100 million, VIPB Accelerated Income Unit Fund Tk 200 million, UFS-Padma Life Islamic Unit Fund Tk 500 million, LankaBangla 1st Balanced Unit Fund Tk 250 million and ATC Shariah Unit Fund Tk 100 million.
Experts and stakeholders said it is still a slow pace of collecting funds through IPOs from the capital market.
They said making the secondary market vibrant was one of the key requirements for creating scope for new companies to raise fund.
Some issue managers told the FE that the number of IPOs is not satisfactory due to sluggish market trend as well as revision in Public Issue Rules.
"The regulator's conservative policy in approving IPOs, a time-consuming process, higher IPO costs and entrepreneurs' reluctance to go for market exposure held back the primary market," said an issue manager, seeking anonymity.
He said the companies having good fundamentals should be allowed to enter into the market to increase its depth.
However, he said many companies having better fundamentals are not interest to float shares in the capital market for different reasons.
Another issue manager said the revised public issue rules compelled many issuer companies to revise their IPO proposals.
In December 2015, the securities' regulator made the use of book-building method mandatory for the companies willing to offer their primary shares with premium, according to the revised IPO rules.
Later, many companies, which submitted IPO proposals to go public with premium under the fixed price method, were asked to revise their proposals for going public under book-building method. Â
In 2015, 12 companies got listed on the stockmarket, which collected an aggregate amount of Tk 8.30 billion through initial public offerings.
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7 cos, five MFs raise Tk 6.98b in 8 months
Babul Barman | Published: September 12, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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