Quality companies to get easier listing: BSEC chief

Large and quality companies will find it easier to get listed on the capital market under measures being taken by the Bangladesh Securities and Exchange Commission (BSEC), its Chairman Masud Khan said on Saturday.
Companies with annual turnover or assets of at least Tk500 crore will be eligible for direct listing through a simplified process, he said.
Masud Khan made the remarks as chief guest at a dialogue titled ‘Capital Market: Growth Dialogue – Pathway to Listing’ at the World Trade Center in Agrabad, Chattogram. The Chattogram Chamber and IDLC Investments Ltd jointly organised the event, according to a press release.
Listed companies enjoy various benefits, including tax concessions, easier access to bank loans and opportunities to attract strategic and foreign investment, he said.
For companies seeking an initial public offering (IPO), an audit will remain mandatory. However, they will not have to repeat the process once the audit is completed, he added.
The BSEC chief said an indicative price would initially be set instead of a fixed IPO price, with the final price determined based on market conditions.
“Entrepreneurs raise funds from both the money market and the capital market for starting, expanding, restructuring and operating their businesses. For stable and sustainable business growth, raising capital from the capital market is more desirable,” he said.
Masud said lengthy listing procedures had encouraged businesses to rely more on the financial sector, limiting the dynamism of the capital market and hindering sustainable expansion.
He noted that Bangladesh’s average trading volume is high compared with its market capitalisation. Bringing more large companies to the stock market would therefore help expand market capitalisation and strengthen the capital market.