Foreign firms should share profits with the public: ICB chief

The chief of the Investment Corporation of Bangladesh (ICB) on Wednesday urged the securities regulator to actively pursue the listing of profitable multinational companies.

Speaking at a discussion organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE Tower in the capital's Nikunja, Professor Dr. Abu Ahmed, chairman of the state-run investment bank, criticised the reluctance of foreign firms to go public while generating substantial profits in Bangladesh.

He suggested that the regulator consider punitive measures if the companies continue to resist listing.

"There are numerous banks and multinational firms making huge profits here. If they show no willingness to list, the regulator must take action," Dr Ahmed said at the discussion titled "Meet-and-Greet and Discussion on the Current State of Bangladesh Capital Market."

The ICB head emphasised that the stock market is flooded with junk stocks and that significant improvement would only happen through listing of strong, profitable companies.

"In many global economies, multinational companies are compelled to go public in the interest of the people. In places like London, companies are required to offload more than 25 per cent of their shares, and India follows a similar approach.

"In Bangladesh, the requirement is only 10 per cent. Yet most multinational firms avoid listing."

On complaints by executives of foreign firms of complex local regulations, Dr. Ahmed said the core issue is their unwillingness to share profits.

"It's not that our IPO regulations are flawed," he said. "If companies like Grameenphone, Robi, Marico, and Berger Paints get listed, why have others not?"

Responding to an earlier comment by Zaved Akhtar, chairman and managing director of Unilever Bangladesh and president of the Foreign Investors' Chamber of Commerce and Industry (FICCI, who cited regulatory complexity as a major deterrent, Dr. Ahmed called on Unilever and multinational banks to step forward and get listed.

He pointed out that one foreign bank earned Tk 33 billion in net profits in 2024, more than the combined profits of Bangladesh's top four banks (Tk 30 billion), yet it had not offered any stake to the public.

"These banks are listed in India, Pakistan, and Thailand. Why not in Bangladesh?"

Dr. Ahmed urged the government to summon non-listed foreign businesses for discussions and to impose additional taxes unless they offload at least 10 per cent of their shares in the local market.

"Tax should be reduced only if they list," he said.

Echoing his view, BSEC Chairman Khondoker Rashed Maqsood stated that both large local corporations and multinational firms have been earning profits from Bangladeshi consumers and that they have a responsibility to share profits with the public.

He, however, spoke against levying higher taxes.

"We don't want to impose taxes at this stage, but multinational companies should voluntarily come forward. If companies like Square Pharmaceuticals could list 30 years ago and reward investors, why can't others do it today?" Maqsood said.

The event's chief guest was Dr. Anisuzzaman Chowdhury, special advisor to the Chief Advisor of Bangladesh. Other notable attendees included Tapan Chowdhury, chairman of the Central Depository Bangladesh Limited (CDBL) and owner of Square Group, and Mominul Islam, chairman of the board of directors of the Dhaka Stock Exchange (DSE).

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