DHAKA : IDLC Investments Limited and The Chittagong Chamber of Commerce & Industry (CCCI) recently partnered to organize a thematic dialogue titled Capital Market Growth Dialogue: Pathway to Listing at the CCCI office in the World Trade Center, Agrabad C/A, Chattogram.
Masud Khan, the Chairman of the Bangladesh Securities and
Exchange Commission (BSEC), attended the event as the Chief Guest. Mominul
Islam, Chairman of DSE, and AKM Habibur Rahman, Chairman of CSE, joined the
event as Special Guests. Among other respected guests were Kazi Mahmood Sattar,
Chairman of IDLC Finance; M Jamal Uddin, Managing Director and CEO of IDLC
Finance; Mesbah Uddin Ahmed, MD of IDLC Investments; Md. Mezbaul Haque, MD of
IDLC Securities; Former CCCI President Amir Humayun Mahmud Chowdhury; former
CCCI Senior Vice President M. A. Salam; Managing Director of CSE Saifur Rahman
Majumdar; Chairman of BSRM Alihussain Akberali; and other dignitaries.
The dialogue brought together senior representatives from
regulatory authorities, securities exchanges, leading business groups,
corporate leaders and capital market participants to discuss the opportunities,
challenges and regulatory facilitation required to encourage greater corporate
participation in Bangladesh’s capital market. Reputed business owners, CFOs and
senior representatives of large and established business groups and corporates
in Chattogram joined the event for a meaningful engagement.
The program focused particularly on Initial Public
Offerings (IPO) and Direct Listing as alternative avenues for established
corporates to raise long-term capital, strengthen their capital structure,
reduce reliance on bank-based financing and support future business expansion.
The discussion also highlighted recent developments in the regulatory
environment, including improvements in valuation methodology, listing
requirements and timelines, as well as ongoing initiatives to further
streamline the listing process. Prospective issuers had the opportunity to
raise their concerns directly with the regulators and seek clarity on the
evolving regulatory framework.
Masud Khan, Chairman of the Bangladesh Securities and
Exchange Commission (BSEC), said, “Due to the lengthy process of listing
companies in Bangladesh’s capital market, businesses often raise funds from the
money market or other sources. As a result, the capital market does not gain
the desired momentum, and businesses also do not achieve sustainable growth. To
make it easier for large and quality companies to list directly on the capital
market and raise funds, the Securities and Exchange Commission is taking
necessary steps in collaboration with stakeholders.”
He further added, “At present, average daily trading in
Bangladesh is 0.14 percent of market capitalization. If average trading rises
to Tk 1,500 crore, it would increase to 0.40 percent. This means trading
activity would be higher compared to the size of the market. Therefore, we need
to bring more large and quality companies to the stock market to increase
market capitalization. This requires a joint effort from all stakeholders.”
CCCI President Mohammed Amirul Haque said, “Many business
owners are reluctant to enter the capital market because listed companies are
required to pay dividends even when they do not make a profit. They also have
to navigate various regulatory complexities after listing. There should be an
opportunity for companies to pay dividends when they make profits and not pay
dividends when they incur losses. The capital market should be allowed to
operate according to its own dynamics. The NBR and Bangladesh Bank are also
involved with the capital market. Therefore, coordination and consensus among
all relevant stakeholders are necessary when formulating laws and policies”.
Kazi Mahmood Sattar, Chairman of IDLC Finance, said, “The
mutual fund market in Bangladesh is still not robust enough. There are also several
challenges in the IPO process. Therefore, BSEC has to work with the NBR to
ensure that tax-related policies do not conflict with the interests of the
capital market.”
M Jamal Uddin, Managing Director and CEO of IDLC Finance,
said, “It is time for businesses in Bangladesh to look beyond traditional bank
financing and consider the capital market as a reliable source of long-term
funding. With a more advanced and transparent valuation process, companies can
now enter this market with greater confidence and achieve a fair value for
their businesses.”
Mesbah Uddin Ahmed, CEO of IDLC Investments, said, “At
IDLC Investments, we are providing full support to help companies enter the
capital market with confidence and build a strong and secure position for the long
term. As part of this, we can help assess how ready your company is to enter
the public market, how much capital it can potentially raise, how much
ownership or shareholding may need to be diluted, and how much control can be
retained by the existing owners. We can also help determine which valuation
method would be most suitable and acceptable for your company, and whether an
IPO, direct listing, or another financing option would be the right choice. All
these matters can be assessed with complete confidentiality, and without any
need for your commitment with IDLC Investments. We will help you evaluate your
options, so you can make the decision that is right for your business.”
Representatives from BSEC, Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) also participated in the dialogue and addressed
key concerns raised by prospective issuers, provided regulatory guidance and
discussed opportunities for further facilitation of the listing process.
The dialogue sought to encourage greater corporate
participation in the capital market by highlighting the strategic and financial
benefits of listing, while emphasizing the role of the capital market in
reducing excessive dependence on bank-based financing. The initiative is
expected to strengthen engagement with quality prospective issuers from
Chattogram and facilitate their journey towards listing, while contributing to
the development of a deeper, more diversified, resilient and sustainable
capital market in Bangladesh.
