The securities regulator and Dhaka Stock Exchange (DSE) have accelerated separate moves to enhance the depth of the country's stock markets ensuring the listing of good companies including state-owned enterprises (SoEs).
As part of the move, the premier bourse DSE has invited some 80 business groups including top ones to attend a conference to be held on December 21.
According to the DSE officials, the business groups which have been invited to attend the conference include Akij, Transcom, Bashundhara, PHP, Jamuna, Meghna, City Group, United, Rahimafrooz, Incepta, Kazi Firms and Bengal Group.
On the other hand, the Bangladesh Securities and Exchange Commission (BSEC) on Thursday asked 17 SoEs having good fundamentals to go public.
Asked, Dr. Shaikh Shamsuddin Ahmed, a BSEC commissioner, said Financial Institutions Division of the Ministry of Finance earlier sent a letter to the BSEC to be informed of the status of the listing of SoEs.
"Earlier, no notable progress of the companies' listing was visible due to countrywide lockdown enforced amid Covid-19 pandemic. The BSEC now has accelerated its move for listing of the SoEs," Mr Ahmed said.
The securities regulator on Thursday sent a letter to 17 SoEs asking them to get listed on stock exchanges raising capital.
The SoEs which have been asked to go public are North-West Power Generation Company, Bakhrabad Gas Distribution Company, LP Gas, Gas Transmission Company, Jalalabad Gas Transmission and Distribution System, Sylhet Gas Fields, Bangladesh Gas Fields Company, Rupantarita Prakritik Gas Company, Electricity Generation Company of Bangladesh.
The other companies are Pragoti Industries, Karnaphuli Paper Mills, Bangladesh Insulator and Sanitaryware Factory, Hotels International, Biman Bangladesh Airlines, Bangladesh Telecommunications Company, Bangladesh Cable Shilpa, and Essential Drugs Company.
In its letter, the securities regulator, however, did not mention any timeframe for the companies to go public.
The BSEC commissioner Mr Ahmed said apart from the listing of non-listed SoEs, the securities regulator also wants to streamline the listed ones.
"Listed SoEs are also not performing properly. Apart from offloading of more shares, the listed SoEs need to bring changes in operations," said the BSEC commissioner.
He said the ministry of finance has also laid importance on the listing of some state-owned banks including Sonali.
"There are different dimensions of listing of the state-owned banks including Sonali Bank. We have been discussing the dimensions calling the non-listed SoEs and banks individually," said the BSEC commissioner Mr Ahmed.
He has said the governance in SoEs will be enhanced through their listing and the government will also be benefitted from this.
Asked about the conference of the premier bourse, the DSE managing director Tarique Amin Bhuiyan said they have invited a large number of corporate groups including leading ones to the conference.
"We want to inspire the business groups to make their companies' listed for long term financing without depending on bank loans," said Mr Bhuiyan said.
He said at the conference the DSE will also hear the advice from the groups regarding the listing of their companies.
"Our target is to enhance the depth of the stock market through the listing of companies having good fundamentals," said the managing director of the premier bourse DSE.
The BSEC chairman Prof. Shibli Rubayat Ul Islam will attend the conference as the chief guest while the president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md. Jashim Uddin will remain present as special guest, according to DSE officials.
The listing of the SoEs, multinational and local companies having good fundamentals was a long-standing demand from the experts and market intermediaries.
The ministry of finance held many meetings with the representatives of the SoEs to accelerate their listing.
But no notable progress regarding the companies' listing was visible as the companies spoke about different limitations and problems.
Presently, the number of companies listed with the stock exchanges is 349 while the number of listed mutual funds is 37.
Of the listed companies, 12 are multinational. The market capitalisation at the DSE stood at above Tk 5.57 trillion on Thursday.
Asked about the listing of more multinational companies, the BSEC commissioner Dr Shaikh Shamsuddin Ahmed said the process of listing such companies is different from local companies.
"We are also working on how more multinational companies can be inspired offering benefits for their listing with stock exchanges," said the BSEC commissioner Mr Ahmed.
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