Ipo Process in Bangladesh

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ASSIGNMENT on IPO PROCESS OF BANGLADESH
Course Title: Financial Institution and Market
Course Code: FIN 335
Submitted to
Md Lutfur Rahman
Assistant Professor
East West University
Date of Submission- August 1, 2012
Submitted by
Subha Sayeed 2010-1-10-082
Md. Shazzad Hossain 2010-1-10-183 (Sec-3)
Sharmin Sultana 2008-3-30-047
Sazzad Khan Mahmud 2009-2-10-107(Sec-3)

LETTER OF TRANSMITTAL

August 1, 2012,
Md. Lutfur Rahman
Assistant Professor
East West University

Sub: Submission of assignment.
Dear Sir,
This is a great pleasure for us to submit an assignment on IPO Process of Bangladesh. We have considered your remarks and instructions very carefully while preparing this assignment. We have tried to visualize all the areas related to this assignment and used your instruction to fulfill your requirements. We would like to express our heartiest gratitude to you, for your tiresome efforts for us, which provided the opportunity to prepare this assignment. We have tried our level best to present the assignment according to the vital standard and requirements. We will be highly encouraged if you are kind enough to receive this assignment. We hope this assignment will serve its purpose. We are hoping your kind advice and suggestions for our any mistake. Sincerely yours,

Subha Sayeed 2010-1-10-082
Md. Shazzad Hossain 2010-1-10-183 (Sec-3)
Sharmin Sultana 2008-3-30-047
Sazzad Khan Mahmud 2009-2-10-107 (Sec-3)

Content
1.What is IPO…………………………………………………………………………………………………………1 2.Why companies engages in IPO………………………………………………………………….….1 2.1Raising capital at low cost………………………………………………………………………….1 2.2Exposure to broader Financial Community……………………………………………….2 2.3 Acquiring Positive Customer Perception…………………………………………………..2 2.4 Enabling expansion in Foreign and Local Market………………………………………2 2.5 Potential for acquiring other businesses……………………………………………………..2 2.6 Enhancing Goodwill………………………………………………………………………………….3 3. The Process of IPO in Bangladesh………………………………………………………………………3 3.1 How much fund a company can raise………………………………………………………3 3.2 Hiring Underwriter…………………………………………………………………………………4 3.3 Developing Prospectus…………………………………………………………………………….4 3.4 Arranging Roadshow……………………………………………………………………………….4 3.5 Setting Indicative Price…………………………………………………………….………………5 3.6 Evaluation of Prospectus by Stock Exchange………………..………………………….6 3.7 Bidding………………………………………………………………..………………………………….7 3.8 Subscription opening for General Investors………………………………………………7 4. Book-building Mechanism………………………………………………………………………….…….8 4.1 Abuses of Book Building Mechanism by Market Syndicate………………………….8 4.2 Amendments done by regulatory………………………………………………………………………….9 4.2.1 Restriction in case of setting indicative price……………………………………….9 4.2.2 Proper exposure of information to institutional investors…………………….9 4.2.3 Requirements in case of participation by institutional investor…………….9 5. Listing fees……………………………………………………………………………………………………………..10 6. Limitation of becoming a listed company in Bangladesh………………………………………….10

1.What is IPO
A corporation first decides to issue stock to the public in order to raise funds. It engages in an initial public offering which is the first time offering of shares by a specific firm to the public. Stock exchange listing of a company has many durable benefits to the company in terms of its potential to grow and expand than a private limited company. Listing a firm on an exchange is a great idea for a business seeking improved market awareness, greater potential for capital investment and enhancements to brand equity etc. However, listing on an exchange should probably be in line with or in accordance with business strategy, otherwise the listing may...
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