BSEC allows 10 companies to raise Tk1,100C in last 3 months

Oct 18, 2020

Business
BSEC allows 10 companies to raise Tk1,100C in last 3 months

Dhaka (Bangladesh), Oct 18: While the country's private investment is going through a stagnant situation, the Bangladesh Securities and Exchange Commission (BSEC) has given the nod to 10 companies for raising Tk1,100 crore in funds by offloading shares in the last three month to the public to expand businesses.
The approval comes at a time when the economy is reeling from fallout of the Covid-19 pandemic.
It is said that the funds, that would be raised, would help largely in increasing cash flow in the market, create jobs and ultimately help the economic recovery.
As per the initial public offering (IPO) prospectus, the lion's share of the funds will be used either for the expansion of existing capacity or setting up new units and the rest to be spent for repaying loans and bearing the IPO expenses.
According to BSEC data, the new commission, headed by Prof Shibli Rubayat-Ul-Islam, approved IPO of 10 companies in last three month to raise Tk1,100 crore from the stock market by issuing shares to general investors.
The figure is significantly higher compared to Tk641.93 crore raised by nine companies in 2019.
"When the economy is suffering due to the pandemic, it is plus point for the country. It will create more jobs, a crying need right now, and help to recover from the pandemic," Prof Abu Ahmed told Dhaka Tribune.
Although the stock market is a great source of funds for industrialization, the opportunity remains untapped.
Source: Dhaka Tribune