BSEC in talks with local, foreign groups over direct listing

The Bangladesh Securities and Exchange Commission (BSEC) has started discussions with major local and foreign companies and business groups to bring fundamentally strong and reputed companies to the capital market through direct listing.

As part of the initiative, the commission held a meeting with representatives of leading companies and business groups at its Agargaon office today (3 September) to discuss ways to bring such companies to the market through direct listing.

Representatives of Unilever, Nestlé Bangladesh, MetLife, bKash, Banglalink, KAFCO, Incepta Pharmaceuticals, Nagad, Meghna Group, PRAN-RFL, DBL Group, Abul Khair Group, ACI, Walton, Akij Resources and Confidence Group, among others, attended the meeting.

BSEC Chairman Masud Khan said the number of strong companies in Bangladesh's capital market remains inadequate. The commission therefore wants to bring reputed flagship companies to the market through direct listing to deepen and broaden the capital market.

He said greater participation by large and quality companies would help attract both domestic and foreign investment while creating more quality investment opportunities.

The BSEC has already approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026". The commission approved the draft at its 1,027th meeting on 1 September.

Under the proposed rules, eligible companies will be able to list directly on the stock exchanges by offloading shares held by existing shareholders, without issuing new shares through an initial public offering (IPO).

At today's meeting, the BSEC presented the eligibility criteria for direct listing, application and listing requirements, and the proposed price discovery process.

Representatives of companies, merchant banks, issue managers, stock exchanges and other stakeholders shared their views and recommendations on various aspects of the proposed rules. Discussions focused on bringing capable and reputable companies to the market while ensuring investor protection and maintaining market discipline.

Masud said listing on the capital market enhances a company's reputation and acceptability. It can also improve share liquidity and create scope for better valuation. Existing shareholders get an opportunity to liquidate their holdings, while the company can eventually raise capital from the market to finance future expansion.

Alongside direct listing, the BSEC is also considering a hybrid approach under which large companies could offload shares held by existing shareholders while issuing new shares to raise fresh capital.

Representatives of several companies expressed interest in entering the capital market through both direct listing and the hybrid approach, which combines the offloading of existing shares with the issuance of new shares.

The BSEC's initiative aims to bring large, fundamentally strong companies that have remained outside the capital market for years under the listing framework. The commission believes greater participation by such companies will increase the number of quality listed firms, deepen and broaden the market, and create more investment opportunities.