Ipo Process in Bangladesh

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IPO Process in Bangladesh

Submitted to:
Md. Lutfur Rahman
Assistant Professor,
Department of Business Administration,
East West University, Dhaka.

Submitted by:
Name| ID|
Arafat Rauf| 2009-2-10-345|

FIN 335
Section: 3
Fall: 2011

Date of Submission: 15th December 2011

Executive Summary|

This term paper gives us a practical experience while passing through the theoretical understanding. The report is the result of our understanding about what are IPO and IPO listing procedure in Bangladesh. In the introduction, we have briefly discussed about IPO. What it is. In the next we have also explained the methodology regarding this report. Secondary data and information have been used in preparing this report. Then comes the Analysis part, where we have explained the listing procedure. We have divide listing procedure in two Parts according to their behavior, one is work before Consent and another in work after consent. In the whole listing procedure, the works are 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. In the end we have concluded with a short discussion of overall analysis.

Table of Content
Content| Page Number |
Introduction| 4|
Methodology of the Study| 4|
Analysis| 5|
Conclusion| 9|
Bibliography| 10|

Introduction|
Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO the issuer may obtain the assistance 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 individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. For minimize the risk and attract more investor to the market The IPO has three part as mention in the following diagram. 10% Shares are restricted for mutual fund; another 10% shares are restricted for Non Residence Bangladeshi (NRB); and rest of the 80% shares are allocated for the general public.

Methodology Of The Study|
We have used only secondary data source to conduct the study. The sources of secondary data are: Secondary information was collected from different web site related to IPO listing procedure in Bangladesh. We have collected much of the information through the internet and those are mentioned in the bibliography page.

Analysis|
An initial public offering or IPO is a mechanism for companies to make available for the first time shares of their stock. Its purpose is to either raise capital for a new company or to fulfill a desire by an existing company to make their shares available to the public. Whether it is a new or existing company, the IPO process follows a fairly straight forward path with precise steps along the way. There are some instructions you have to follow to get consent from Securities Exchange Commission. These instructions are mandatory for investors. Through this process Investor has to organize all the relevant information. We have divide listing procedure in two Parts according to their behavior, one is work before Consent and another in work after consent. In the whole listing procedure, the works are separable like work before IPO consent and work after IPO consent.

Works before Obtaining the Consent from Securities Exchange Commission 1) Selection of Advisors: Before applying for consent every company suppose to have section of legal advisor. Legal Adviser is responsible for Security of internal information. Local...
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