Despite the Covid pandemic
Mahfuja Mukul: In the year 2021, a total of 15 companies have raised Tk 1,283.38 crore from the stock market despite the Covid-19 pandemic and dull economy.
The entrepreneurs raised a record amount of fund from the stock market through an initial public offering (IPO) in 2020, despite the outbreak of the epidemic coronavirus. In 2021, the amount of withdrawals decreased slightly. However, the IPO market was quite booming throughout the year.
A review of the data shows that 12 companies have so far raised money from the stock market through IPOs. In addition, for the rest of the year, two more companies will raise fund from the stock market through IPOs. In addition, an institution has raised fund this year by issuing bonds.
Last year, a record Tk 1,296.06 crore was collected from the stock market through IPO. Although a record amount of money was raised through IPO last year, the picture at the beginning of the year was not good at all. Due to the epidemic, the stock market is closed for 7 consecutive days from March 26 to May 30.
Earlier in 2019, allegations surfaced from various quarters that the Bangladesh Securities and Exchange Commission (BSEC), headed by Khairul Hossain, was approving the IPOs of one weak company after another. As a result, the overall stock market is suffering. The most criticized of these is the IPO approval of Coppertech Industries. At one stage, the BSEC decided not to issue a new IPO after meeting the commission on April 30, 2019 in the face of big criticism.
It was decided at the meeting that no new IPO application would be accepted from April 30 until the Securities and Exchange Commission (Public Issue) Rules 2015 is amended. However, within two and a half months of that decision, BSEC amended the Public Issue Rules 2015 by increasing the quota of general investors in IPO. After a long time, the commission headed by Khairul Hossain did not approve any new IPO. As a result, the market remains IPO-free for the first five months of 2020.
However, after the appointment of Professor Shibli Rubaiyat-ul Islam as the Chairman of BSEC at the end of May, the IPO market became active again. The commission headed by him started giving IPOs of one company after another. As a result, entrepreneurs have the opportunity to raise a record amount of fund in just seven months.
The IPO market has been booming since the end of last year. In the first month of this year, three companies raised fund from the stock market through IPO. Of this, Tawfiqa Food & Lavello Ice Cream raised Tk 30 crore and e-Generation raised Tk 15 crore on fixed price basis. And Lube-Ref (Bangladesh) Limited raised Tk 150 crore through book building method. Of this, the premium is Tk 104 crore 75 lakh 6 thousand.
The three companies raised fund through IPOs in February. Of this, NRBC Bank raised Tk 120 crore and Desh General Insurance raised Tk 18 crore through fixed price system. And by raising the index a bookbuilding method Tk 50 crore. Of this, the premium wasTk 41 crore 74 lakh 63 thousand.
Then in March and April no new IPO came. After a two-month gap, Sonali Life Insurance raised fund through an IPO in May under the new rules. Every investor who applies for an IPO will get shares. This rule starts with this insurance company. The amount raised by this company in fixed price method was Tk 19 crore.
Two companies come to IPO in June and July. In June, Baraka Patenga Power raised Tk 225 crore through bookbuilding method. The premium is Tk 151 crore 22 lakh 95 thousand. In July, South Bengal Agriculture Bank raised Tk 100 crore in a fixed price manner.
Then in August and September, the IPO is closed again for two months. The two companies raised money through IPO in October. Of this, Sena Kalyan Insurance raised Tk 16 crore and Acme Pesticides Tk 30 crore. Both these companies raise money through IPOs in a fixed price manner.
No company raised money through IPO in November. In December, a company raised funds through an IPO and an institutional bond. Union Insurance has raised Tk 19 crore 36 lakh 9 thousand through fixed price IPO. Tk 50 crore has been raised through AIBL Mudaraba Perpetual Bond.
Besides, IPO applications of BD Thai Food and Union Bank are currently being accepted. The IPO application of BD Thai Food was accepted till December 29 and the IPO application of Union Bank will be accepted till today. Between the two institutions, BD Thai Food will raise Tk 15 crore and Union Bank will raise Tk 428 crore respectively.
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