Ipo Process in Bangladesh
Executive Summery
“Going Public is like planning a child. Once the idea catches hold, it just grows and grows. Your life becomes more complicated.
It will cost you a lot of money. And….it can be a very, very rewarding experience” Anonymous
The main purpose of the report is to provide a basic idea of Initial Public Offering (IPO). In this report we try to find out, what are steps a company has to go through for IPO, according to the Security Exchange Commission (public issue rules 2006).
At beginning of this report we give a little idea about IPO, then we descried why company go for IPO, after then we go through the IPO process step by step, and finally we draw a flowchart of IPO process with time allocation.
Generally companies go for IPO to raise capital and other reasons are liquidation of the shares of the company, expansion of the company into new territories or markets, expansion of the company either by acquisition or merger, and levergaing future sales or business to create extra value for the company. Base on the SEC consent we can divide the IPO process in two parts; one is work before Consent and another in work after consent. Work Before Consent consists of Selection of Advisors, Completion of Valuation and restructuring, Selection of Bankers to the Issue, Selection of underwriters, Collection of NOC from Lenders, Audit of Accounts, Credit Rating Report, Agreement with CDBL, Approval from Sponsors, Refund warrant guarantee, Draft Prospectus, Consent from SEC, and Application Submission. And Work After Consent consists of Submission of prospectus, Announcement for the investor, Provide full prospectus, Subscription period, Application for listing, Transaction rate, In case of under subscription, Application to Stock Exchanges for Listing, and Approval of listing.
At the end; Flowchart will give an idea about the time requirement for overall IPO process.
Initial Public Offers
“Going Public is like planning a child. Once the idea catches hold, it just grows and grows. Your life becomes more complicated.
It will cost you a lot of money. And….it can be a very, very rewarding experience” Anonymous
The main purpose of the report is to provide a basic idea of Initial Public Offering (IPO). In this report we try to find out, what are steps a company has to go through for IPO, according to the Security Exchange Commission (public issue rules 2006).
At beginning of this report we give a little idea about IPO, then we descried why company go for IPO, after then we go through the IPO process step by step, and finally we draw a flowchart of IPO process with time allocation.
Generally companies go for IPO to raise capital and other reasons are liquidation of the shares of the company, expansion of the company into new territories or markets, expansion of the company either by acquisition or merger, and levergaing future sales or business to create extra value for the company. Base on the SEC consent we can divide the IPO process in two parts; one is work before Consent and another in work after consent. Work Before Consent consists of Selection of Advisors, Completion of Valuation and restructuring, Selection of Bankers to the Issue, Selection of underwriters, Collection of NOC from Lenders, Audit of Accounts, Credit Rating Report, Agreement with CDBL, Approval from Sponsors, Refund warrant guarantee, Draft Prospectus, Consent from SEC, and Application Submission. And Work After Consent consists of Submission of prospectus, Announcement for the investor, Provide full prospectus, Subscription period, Application for listing, Transaction rate, In case of under subscription, Application to Stock Exchanges for Listing, and Approval of listing.
At the end; Flowchart will give an idea about the time requirement for overall IPO process.
Initial Public Offers