BSEC opens way for IPO, direct listing to boost stock market

stock-market

Dhaka, Sept 16 - Bangladesh Securities and Exchange Commission (BSEC) has said companies interested in raising capital from the country’s capital market can proceed with initial public offerings (IPOs) under the existing Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025.

In a press release issued Wednesday, the securities regulator said companies currently interested in raising capital through IPOs do not need to suspend or delay their applications in anticipation of any future amendments or changes to the relevant rules.

The BSEC said if any amendment, change or relaxation is subsequently introduced to the IPO-related regulations, necessary facilities will be provided to applicant companies, where applicable, in light of those changes.

Meanwhile, established companies that do not require fresh capital for business expansion or operations but whose existing shareholders are interested in offloading shares through the capital market may get an alternative route through direct listing.

Under the proposed direct listing mechanism, a company would be able to get listed on a stock exchange by offloading shares held by its existing shareholders, without issuing new shares itself.

The BSEC has already drafted the Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026 and published the draft for public opinion.

According to the proposed rules, eligible companies will be able to apply for direct listing.

The commission said the proposed framework would help increase the participation of new and capable companies in the capital market, create opportunities for existing shareholders to offload shares, and contribute to expanding the market’s depth and breadth.

Once the proposed rules come into effect, the direct-listing framework will provide an additional avenue for eligible companies to enter the capital market.

The BSEC has therefore encouraged interested companies to make the necessary preparations.

The regulator said companies requiring fresh capital may enter the capital market through IPOs, while those that do not need new capital but want their existing shareholders to offload shares may consider direct listing as an alternative.

The BSEC said it will continue its policy and regulatory reform initiatives to increase the participation of sound and successful companies in the country’s capital market and build a deeper, more diversified, transparent and efficient market. - UNB