CSE to launch IPO index

The Chittagong Stock Exchange (CSE) is going to introduce the IPO (initial public offering) index in a bid to help investors in observing the performance of newly listed companies for a certain period, officials said.

The port city bourse is likely to introduce the IPO index along with other two new indices-Benchmark and Shariah-on February 8 next.

Al Maruf Khan, the president of the CSE, said the performance of a newly listed company cannot be specified by observing any kind of general index, which includes all listed companies.

"That's why the CSE has moved to introduce the IPO index to help investors to observe the performance of a newly listed company," said Mr. Khan.   

Syed Sajid Husain, the CSE managing director, said the IPO index will include newly listed companies for around two years.

The CSE officials, however, said nothing about the base points and calculation process of their proposed indices.

They discussed the issues of introducing the new indices Monday.

"It may be possible to speak about new indices in near future," said the CSE managing director.

The National Stock Exchange (NSE) of India is working to introduce the proposed indices on the CSE.