Dhaka bourse has introduced the electronic subscription system to allot IPO (initial public offering) shares on pro-rata basis instead of lottery.
Previously, the IPO shares were allotted among the investors through lottery.
On January 20, the Securities and Exchange Commission (BSEC) took the decision of allotting IPO shares on pro-rata basis.
The objective of introducing the system is to reduce the time of companies' listing along with increasing investors' participation in the capital market.
Dhaka Stock Exchange (DSE) introduced the electronic subscription system of allotting IPO shares at a ceremony held on Tuesday, said a DSE release.
The BSEC commissioner Shaikh Shamsuddin Ahmed and DBA (DSE Brokers Association) president Sharif Anwar Hossain attended the programme as the chief guest and special guest respectively.
"The newly introduced electronic subscription system will reduce the cost of issuing IPO shares and the time of companies' listing," the release said.
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