2019: Lacklustre year for IPOs

Low-cap companies have dominated the initial public offerings, or IPOs, in the outgoing year in what was a bearish market. A total of eight firms raised Tk 5.52 billion combined, including premium, by floating IPO shares in 2019, according to the Dhaka Stock Exchange, DSE. In 2018, 13 companies and a mutual fund collected Tk 6.46 billion. Fund raising by companies through IPOs slumped by 14 per cent year-on-year in 2019. The DSEX, the prime index of DSE, lost more than 1,560 points or 26 per cent between January 24 and December 24 this year. The companies followed two methods-fixed price and book-building-while issuing IPOs in the capital market. Three companies that turned to book-building method were Square Knit Composite (Tk 1,500 million), Runner Automobiles (Tk 1,000 million) and ADN Telecom (Tk 570 million) during the period. In contrast, five companies opted for fixed-price method: New Line Clothings (Tk 300 million), Silco Pharmaceuticals (300 million), Coppertech Industries (Tk 200 million), Sea Pearl Beach Resorts (Tk 150 million) and Ring Shine Textiles (Tk 1500 million). Under the book building method, eligible investors’ quota was brought down to 50 per cent from 60 per cent and the general investors’ quota (excluding NRBs) was raised to 40 per cent from 30 per cent. The IPO market has been sluggish since the beginning of 2010 when the market boomed and then crashed as the regulator has tried to limit new issues. Fundraising through IPOs had peaked at Tk 16.78 billion in 2011 since the stock market debacle of 2009-10.

Source: https://today.thefinancialexpress.com.bd/first-page/2019-lacklustre-year-for-ipos-1577296431

ADB to support BD’s Reform

The Asian Development Bank (ADB) is expected to help Bangladesh ease transborder and regional trade through facilitating infrastructural development and regulatory reforms. Economic Relations Division (ERD) officials said an ADB team on a recent mission in Dhaka sat with public agencies and ministries concerned preparatory to the proposed project. The multilateral funder is likely to provide $1.5 million for doing a feasibility study and other pre-project work. Under the ADB-aided project, they said, the Bangladesh Land Port Authority (BLPA) under shipping ministry will develop necessary infrastructures at key ports like Benapole, Sonamasjid, Bhomra and Burimari. The BLPA will build warehouses at the ports to keep both importables and exportables with highest security. Both Local Government Engineering Department (LGED) and Roads and Highways Department (RHD) will develop the road connectivity in the cross-border land ports.

Source: https://today.thefinancialexpress.com.bd/first-page/adb-to-support-bds-reform-1577296327

BEPZA inks $ 51.82 million investment deal with Taiwanese Co

Bangladesh Export Processing Zones Authority (BEPZA) has signed a US$ 51.82 million investment agreement with Golden Chang Shoes (BD) Ltd., a concern of renowned Golden Chang Group of Taiwan. The company will set up a factory in Cumilla EPZ for producing safety shoes, casual shoes and all kinds of shoes, said a statement. This fully foreign-owned company will produce 3.5 million pairs of shoes per annum for the world famous brands Caterpillar, Timberland and Dr. Martens (UK). Golden Chang Shoes will be creating employment opportunities for 6,171 Bangladeshi nationals.

Source: https://today.thefinancialexpress.com.bd/trade-market/bepza-inks-5182-million-investment-deal-with-taiwanese-co-1577288846