IPO freeze grips Bangladesh: Why no new listings in 18 months

Bangladesh's IPO market is going through its longest drought in decades, with no new company going public for more than 18 months. 

Despite clear instructions from Chief Adviser Muhammad Yunus to revive the market by listing state-owned and multinational firms, progress has stalled.

Why this great IPO drought in Bangladesh's capital market

Here's what's behind the freeze:

• Longest dry spell in years: Not a single new IPO has been approved since Techno Drugs in March 2024.
• Reform freeze: The new Bangladesh Securities and Exchange Commission (BSEC) scrapped nearly a dozen pending IPOs under its "clean-up" initiative.
• MNCs unmoved: Multinational firms say they have "no board decision" to raise funds through the stock market.
• SOE listings stalled: The plan to list 18 state-owned enterprises (SOEs) has made no headway ahead of the February general election.
• Yunus' directive unheeded: Despite orders to offload government shares and encourage private listings, regulators have little to show.
• Historical contrast: During the 2007–08 caretaker government, 26 firms were listed; under the current interim government, none.
• Bureaucratic delay: IPO approval in Bangladesh takes over 24 months, compared to 6–8 months in regional markets.
• No incentive: Big businesses prefer bank loans over equity financing due to complex compliance requirements.
• Market uncertainty: Merchant bankers say unclear Public Issue Rule amendments have paralysed confidence.
• Poor coordination: Stakeholders complain of limited engagement with the regulator and fear rejections.
• Political instability: Entrepreneurs are prioritising survival over expansion amid post-revolution uncertainty.
• Rule overhaul pending: BSEC says new Public Issue Rules are being finalised to "facilitate faster listings."
• 'Green channel' in the works: DSE promises a faster listing route for quality companies once reforms are approved.
• Economic disconnect: The economy is rebounding - World Bank forecasts GDP growth at 4.8% in FY26 - but the capital market remains cold.
• Experts warn: Former BSEC chief Faruq Ahmad Siddiqi cautions, "Without fresh listings, the market will dry up."

Despite reforms on paper and an economy showing signs of recovery, Bangladesh's capital market remains stuck in limbo, with confidence low, listings stalled, and investors waiting for a real breakthrough.