This term paper gives us a practical experience while passing through the theoreticalunderstanding. The report is the result of our understanding about what are IPO and IPO listingprocedure in Bangladesh.In the introduction, we have briefly discussed about IPO. What it is. In the next we have alsoexplained the methodology regarding this report. Secondary data and information have been usedin preparing this report. Then comes the Analysis part, where we have explained the listingprocedure. We have divide listing procedure in two Parts according to their behavior, one iswork before Consent and another in work after consent. In the whole listing procedure, the worksare separable like work before IPO consent and work after IPO consent.
Like all study, this report has also certain limitations which were in some cases unavoidable. Inthe end we have concluded with a short discussion of overall analysis.
Table of Content
Methodology of the Study
Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," is whena company issues common stock or shares to the public for the first time. They are often issuedby smaller, younger companies seeking capital to expand, but can also be done by large privatelyowned companies looking to become publicly traded. In an IPO the issuer may obtain theassistance of an underwriting firm, which helps it determine what type of security to issue(common or preferred), best offering price and time to bring it to market. For the individualinvestor, it is tough to predict what the stock or shares will do on its initial day of trading and inthe near future since there is often little historical data with which to analyze the company. Forminimize the risk and attract more investor to the market The IPO has three part as mention inthe following diagram. 10% Shares are restricted for mutual fund; another 10% shares arerestricted for Non Residence Bangladeshi (NRB); and rest of the 80% shares are allocated for thegeneral public.
Matholodogy of the study
We have used only secondary data source to conduct the study. The sources of secondary dataare:Secondary information was collected from different web site related to IPO listingprocedure in Bangladesh. We have collected much of the information through the internetand those are mentioned in the bibliography page. IntroductionMethodology Of The Study
An initial public offering or IPO is a mechanism for companies to make available for the firsttime shares of their stock. Its purpose is to either raise capital for a new company or to fulfill adesire by an existing company to make their shares available to the public. Whether it is a new orexisting company, the IPO process follows a fairly straight forward path with precise steps alongthe way.There are some instructions you have to follow to get consent from Securities ExchangeCommission. These instructions are mandatory for investors. Through this process Investor hasto organize all the relevant information. We have divide listing procedure in two Parts accordingto their behavior, one is work before Consent and another in work after consent. In the wholelisting procedure, the works are separable like work before IPO consent and work after IPOconsent.
Works before Obtaining the Consent from Securities Exchange Commission
1)Selection of Advisors: Before applying for consent every company suppose to havesection of legal advisor. Legal Adviser is responsible for Security of internal information.Local Organization usually appoints only Local Advisor and multinational organizationsupposed to have two legal advisers both Local & Foreign.
2)Completion of Valuation and restructuring: Before getting consent Organization willhave to complete their total asset Valuation. Another important process is...
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