IPO process should be transparent, easy
DSE chairman says at training programme
The initial public offering (IPO) process needs to be transparent and easy to make the stock market the main source of long-term financing for industries, according to Md Eunusur Rahman, chairman of the Dhaka Stock Exchange (DSE).
His comments came at the beginning of a two-day training programme on "IPO: Process and Procedures", organised by the DSE at its auditorium yesterday.
"Due to overdependence on banks for finance, the financial sector suffers from some mismatches," he said.
"So, the time has come to focus on meeting all long-term demands from the stock market," he added.
Rahman then said a company gets IPO approval depending on its financial reports. So, financial statements should be transparent and chartered accountancies could play vital role to this end.
In the last ten years, more than a hundred companies that came to the stock market through IPOs saw their performance drop after getting listed.
As a result, their share prices fell below their face value, he added.
M Shaifur Rahman Mazumdar, managing director of the DSE, said many corporates and conglomerates in Bangladesh have the scope to come to the market. However, they do not do so due to the lack of proper knowledge. So, merchant banks should work on the issue so that all well-performing companies become listed, he added.