Govt moves to list 10 profitable SOEs and MNCs on stock market
Finance adviser says although similar discussions had taken place in the past, this time the initiative has progressed further
The interim government has given in-principle approval for the listing of profitable State-Owned Enterprises (SOEs) and multinational companies (MNCs) with government shareholdings on the capital market, marking a significant step towards enhancing market depth and restoring investor confidence.
Initially, steps will be taken to bring 10 profitable companies to the stock market. These are Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company, North-West Power Generation Company, Paschimanchal Gas Company, Sylhet Gas Fields, Syngenta Bangladesh, Unilever Bangladesh, Synovia Pharma, Novartis (Bangladesh) and Nestlé Bangladesh.
The decision was finalised at a meeting held yesterday (7 January) at the Secretariat, chaired by Finance Adviser Salehuddin Ahmed. The finance adviser and Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed briefed journalists after the meeting.
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Under the plan, several profitable state-owned enterprises will be directly listed on the capital market, while multinational companies will decide on listing subject to approval from their respective boards of directors.
"We have given our consent from the government side. The process will begin, but the multinational companies have made it clear that they cannot make a final decision without board approval," the finance adviser said.
He noted that the stock market has largely returned to compliance with regulatory frameworks, making it essential now to increase market depth and rebuild investor confidence. "That is why we are taking the initiative to offload shares of fundamentally strong government companies."
Salehuddin added that although similar discussions had taken place in the past, this time the initiative has progressed further. "The ministry has given its consent, and the concerned companies have indicated their willingness to offload shares. We have asked others to move quickly so that the process can start."
Asked whether the listings could be completed within the tenure of the current government, the finance adviser said efforts are under way but cautioned that the process was complex. "We cannot bypass the Companies Act."
'MNCs can't avoid listing'
Abu Ahmed said the decision was made in the public interest and argued that there was no justification for multinational companies avoiding listing in Bangladesh. "If Nestlé can be listed on the Bombay Stock Exchange, what is the problem in Bangladesh?" he said, adding that while Unilever's former GSK unit is listed, its core business remains unlisted, despite the company being among the top listed firms in India, Pakistan and Thailand.
The ICB chairman said multinational companies should be offered incentives or tax concessions if necessary, but warned that higher taxes could be imposed if they chose not to come to the market. "The companies have been given a clear message that people in Bangladesh want to see these good companies listed on the stock exchange."
Referring to Unilever Bangladesh, in which the government holds nearly 40% shares, he said the company was reluctant to offload even 5% of that stake. "Can't the government sell its own shares?" he added.
