Entrepreneurs are borrowing money from banks due the lengthy process of fixed pricing and book building in Initial Public Offering (IPO) system for withdrawing money from the share market.
Researchers and analysts said this at a seminar on Monday titled 'Importance of IPO in Industrialisation' at a city hotel.
Online news portal businesshour24.com organised the seminar.
Former caretaker government adviser Dr AB Mirza Azizul Islam was the chief guest and former Bangladesh Securities and Exchange Commission (BSEC) Chairman Faruq Ahmad Siddiqi, former Bangladesh Bank Deputy Governor Ibrahim Khaled and BCSE Commissioner Dr Swapan Kumar Bala were present as special guests.
"The system of arranging money through IPO is very significant for industrialisation and development of a country. But in our country, private sector investment has stagnated. As a result, only 1 percent GDP was increased in the last eight years," said Mirza Azizul Islam.
"There're some other issues like lack of infrastructure, gas and electricity supply, good governance and skilled manpower. If these problems are not resolved and private sector investment is not increased, desired benefits from the capital market are not possible," he said.
Businesshour24.com Chief Advisor Akter Hossain Sannamat presided over the programme while Dhaka University Professor Dr Mahmud Osman Imam, Bangladesh Merchant Bankers' Association First Vice-president Md Ahsan Ullah and IDLC Investment Managing Director Md Moniruzzaman spoke at the occasion.
