The Bangladesh Securities and Exchange Commission (BSEC) has brought some changes in the Initial Public Offering (IPO) allotment process.
To apply for an IPO of a new company, the subscription cost is Tk 10,000.
According to the system which came into effect in April, an investor could deposit a minimum of Tk 10,000 or its multiples of Tk 20,000, Tk 30,000, Tk 40,000 and a maximum of Tk 50,000 in the BO account for an IPO.
Previously, IPO shares were allotted through a lottery which is not a systemic process. But the IPO application fee will not be fixed in the case of bonds.
Besides, an eligible applicant has to have a minimum share of Tk20,000 in the BO account. The BSEC has imposed such a provision mainly to eliminate the violence of IPO traders in the stock market.
Nota bene, the commission raised the quota for general investors for IPO to 70 per cent last week.
Source: The Business Standard
