Staff Reporter :
Bangladesh’s capital market is passing through one of its most difficult phases, with no new company going public for more than 18 months.
The initial public offering (IPO) market has remained virtually inactive since March 2024, despite repeated instructions from Chief Adviser Muhammad Yunus to boost activity by listing both state-owned and multinational companies.
Market analysts say this is the longest IPO drought in decades, raising serious concerns about investor confidence and the future of equity financing in the country.
The last company to go public was Techno Drugs Limited, listed in early 2024. Since then, the Bangladesh Securities and Exchange Commission (BSEC) has not approved a single IPO.
Shortly after being restructured, the new commission cancelled nearly a dozen pending IPO applications under a “clean-up” initiative meant to enhance transparency.
While the move aimed to improve oversight, it effectively brought new listings to a halt.
Multinational companies, which were expected to play a major role in reviving the market, have shown little interest in listing their shares. Most have stated that their boards have taken “no decision” to raise funds from the stock market.
Meanwhile, the government’s plan to list 18 state-owned enterprises (SOEs) has made no visible progress, as political priorities shift ahead of the February general election.
During the previous caretaker government of 2007–08, as many as 26 firms were listed, compared to none so far under the current interim administration a stark contrast that highlights how slow the market has become.
Experts say that bureaucratic delays are one of the biggest challenges. In Bangladesh, it can take more than two years for a company to get IPO approval, while in countries like India or Vietnam, the process takes only six to eight months.
This lengthy process discourages companies from applying, especially when bank loans are easier and faster to secure.
Merchant bankers also point to regulatory uncertainty, citing unclear amendments to the Public Issue Rules that have confused both investors and issuers.
Many firms are reportedly waiting for clarity before proceeding with their applications.
To address these issues, the BSEC is reportedly finalising new Public Issue Rules aimed at simplifying the process and introducing a “green channel” system that would fast-track approvals for companies with strong financials.
The Dhaka Stock Exchange (DSE) has welcomed the idea, saying it could help restore momentum.
However, the overall situation remains worrying. While Bangladesh’s economy is showing signs of recovery — with the World Bank projecting GDP growth of 4.8 percent in FY26 — the stock market has yet to reflect that progress.
Former BSEC chairman Faruq Ahmad Siddiqi warned that without fresh listings, the market could “dry up” completely.
Unless reforms are implemented quickly and confidence is restored, Bangladesh’s IPO market risks staying frozen, undermining both investor interest and the country’s long-term financial growth.
