BSEC revives direct listing for big companies after 16 years

Large and established companies may soon be able to list on Bangladesh’s stock exchanges without going through an initial public offering (IPO), as the Bangladesh Securities and Exchange Commission (BSEC) has approved the draft of a new direct listing regulation.

Under the proposed Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026, eligible companies would be allowed to list by offloading 10pc-20pc of shares held by existing shareholders, instead of issuing new shares through an IPO.

The move comes 16 years after the direct listing route was previously introduced.
According to a BSEC press release issued on Tuesday, the draft rules will soon be published in national newspapers and on the commission’s website for public consultation.

The proposed facility will be available only to large, established and strategically important companies that meet specific eligibility criteria.

Companies fully or majority owned by the government will qualify for direct listing. Companies in which the government directly or indirectly holds at least 10pc of the paid-up capital will also be eligible.

Foreign-owned companies that are fully or majority owned by foreign shareholders will likewise be eligible under the proposed rules.

In addition, BTRC-approved telecommunications and ICT-related service providers, ICT infrastructure companies and ICT manufacturers with paid-up capital of at least Tk300 crore will qualify for direct listing.

Scheduled banks, financial institutions and insurance companies with at least three years of operating history will also be eligible to apply.

Companies with annual turnover or total assets of at least Tk500 crore will also qualify, subject to fulfilling other requirements.

However, meeting the eligibility criteria will not automatically guarantee listing approval.
Applicants will also have to comply with other requirements set by the stock exchanges, the depository and the central counterparty registered with the BSEC.

The commission said the draft rules would be opened to public consultation before the final regulation is issued.