Ipo Process in Bangladesh

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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
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In the following we have designed the whole IPO procures in one diagram.

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 Organization usually appoints only Local Advisor and multinational organization supposed to have two legal advisers both Local & Foreign.

2. Completion of Valuation and restructuring: Before getting consent Organization will have to Completion of their total asset Valuation. Another important process is changing organization employee management and also restructuring and obtaining Reports thereon. Listed Organization’s all top level employee usually has to follow by the Auditor.

3. Selection of Bankers to the Issue: Bankers Letter confirming opening of separate account for IPO and accepting their appointment as such Rule -18 of Public Issue Rules 2006. Bankers to the issue will be the important stake holder and they will be responsible for deposit and withdraw money of investors.

4. Selection of underwriters: Selection of underwriters & completing underwriting agreement is another essential process of IPO listing procedure. Underwriters are liable for successful float of all the shares. If the shares under subscribed bellow the whole offer, then underwriter will have to buy and
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