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.
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.
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.
Prime Bank MF Tenure extended
The trustee has approved the extension of the tenure of Prime Bank 1st ICB AMCL Mutual Fund for another term of ten years. According to a disclosure posted on the website of Dhaka Stock Exchange (DSE), the tenure of the fund has been extended up to January 24, 2030. The tenure has been extended as per BSEC Order issued on October 02, 2018 through the exercise of its power accorded by the Section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969). Investment Corporation of Bangladesh (ICB) is the trustee and the ICB Asset Management Company is the asset manager of the fund. The units of the Prime Bank 1st ICB AMCL Mutual Fund presently are being traded below face value of Tk 10. The price was Tk 4.80 each on Tuesday on the prime bourse.
Total Premium Income of Pvt life Ins Cos rises to Tk 84,758m
The total premium income of private sector life insurance companies increased from Tk. 77,318 million in 2017 to Tk. 84,758 million in 2018. The total assets of the private sector life insurance companies stood at Tk.363,942 million in 2018 as against Tk. 346,521 million in 2017. According to the latest annual report of Bangladesh Insurance Association (BIA), the gross premium income of non-life private sector insurance companies increased from Tk. 26,694 million in 2017 to Tk.30,347 million in 2018 registering a growth rate of 13.68 per cent. The total assets stood at Tk. 79,774 million in 2018 whereas it was Tk. 75,495 million in 2017. The total investment stood at Tk. 38,036 million in 2018 while it was Tk. 38,635 million in 2017. The AGM approved the Annual Report of 2018 on the activities of the BIA and adopted the audited accounts of the Association and the report of the auditors for the year ended 31st December, 2018.
LankaBangla’s CSR 2019
Shikha Tailoring Training Programme 2019′ was arranged for 30 distressed women from different areas of Kurigram from October to December 2019 as part of its CSR activities by LankaBangla Foundation. LankaBangla Foundation and Ulipur Pourashova jointly awarded course completion certificate to all 30 trainees for the 03-months long training programme, an initiative by LankaBangla Finance.
Southeast Bank opens Sub-Branch at Pabna
Southeast Bank Limited inaugurated its Abdul Hamid Road Uposhakha at Pabna on Tuesday. Md. Habibur Rahman, Additional Managing Director of Southeast Bank inaugurated the sub-branch at Pabna. In the inaugural ceremony, renowned businessmen, industrialists, customers, educationists, local elites, local journalists and other officials of the Bank were also present. Southeast Bank’s first and the foremost priority is to provide quality service and maximum satisfaction to the customers. From now on, technology-backed modern banking services (except Foreign Exchange) will be provided to the customers from the newly opened Abdul Hamid Road Uposhakha.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|↓ 36.08||↓ 0.13%|
|FTSE100||7,632.24||↑ 8.65||↑ 0.11%|
|Nikkei 225||23,885.81||↑102.94||↑ 0.43%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 61.36 ||↑ 0.25||↑ 0.41 %|
|Crude Oil (Brent)||$ 67.45 ||↑ 0.25||↑ 0.37 %|
|Gold Spot||$ 1,503.50||↑ 3.66||↑ 0.24 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.2354|
|GBP 1||BDT 107.728|
|EUR 1||BDT 92.2803|
|INR 1||BDT 1.16661|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<