IPO rules updated to attract ‘good companies’ in 2026

The Bangladesh Securities and Exchange Commission (BSEC) has recently revised the rules for Initial Public Offerings (IPOs) with the intention of attracting high-quality companies to the capital market in the year 2026. The new regulations, officially titled the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025, were published in a gazette on December 30 and are now in effect.

One of the key changes introduced in the updated rulebook is the strengthening of the role of stock exchanges in the listing process for new companies. Under the revised rules, stock exchanges are tasked with granting preliminary approval for IPO applications, with final approval to be provided by the BSEC based on the recommendations of the exchanges. Additionally, companies seeking to go public through IPOs must have a minimum paid-up capital of Tk 30 crore, and a minimum of 10 percent of post-IPO shares must be made available to the capital market.

Furthermore, the new rules impose a five-year deadline for issuers to utilize the funds raised through IPOs completely. Abul Kalam, a Director and spokesperson for the BSEC, expressed optimism about the positive impact the new rules will have on the stock market in the long term, highlighting the importance of reforming IPO regulations following updates to mutual fund and margin rules.

Despite the efforts made by the BSEC over the past year to attract quality companies to the market, the anticipated influx of major enterprises did not materialize. Investors, such as Sajjadul Islam, have expressed disappointment over the delayed listing of notable companies, stating that the market could greatly benefit from the presence of firms like Square Pharma, Grameenphone, or Robi. The absence of such companies has led to a decline in investor confidence and heightened frustration among market participants.

Abul Hossain, another investor, echoed similar sentiments, noting that the continuous delays in listing reputed companies have deterred many investors from engaging with the market. The prolonged bureaucratic obstacles are seen as a significant hindrance to progress, as they continue to impede efforts to bring state-owned entities and multinational corporations into the market.

According to a senior BSEC official, who spoke on condition of anonymity, bureaucratic complexities have been a major factor contributing to the failure to list quality companies in the past year. Despite concerted attempts, including direct instructions from higher authorities, the listing of 18 state-owned companies was hindered by administrative delays and lack of cooperation.

With the implementation of the new IPO rules and a renewed focus on attracting reputable companies to the capital market, the BSEC aims to revitalize investor confidence and promote sustainable growth in the stock market moving forward.