The Financial Express
Swasti Lankabangla Swasti Lankabangla

DSE holds workshop for EIs to ensure logical IPO bidding

| Updated: April 24, 2018 09:40:40

Representational image (Collected) Representational image (Collected)

Dhaka Stock Exchange (DSE) on Sunday arranged a workshop for eligible investors (EIs) to ensure logical bidding of IPO shares under book building method.

The premier bourse arranged the workshop following the instruction of the Bangladesh Securities and Exchange Commission (BSEC).

Presently, there are around eight hundred EIs, including stock dealers, merchant banks and asset management companies, who take part in bidding of IPO shares under the book building method.

DSE Managing Director KAM Majedur Rahman inaugurated the six-day workshop in the DSE, expressing the hope that the workshop would help improve the overall perception of the EIs about accurate bidding of IPO shares and make the bidding logical.

"The main objective of this workshop is to inspire the EIs to follow the accurate bidding process," he said, adding that similar workshop will also be arranged in the port city of Chittagong.

Under the book building method, EIs are allowed to purchase 50 per cent shares of a company at cut-off price determined in the bidding.

In February last, the securities regulator set some code of conduct for EIs in the bidding process to ensure 'justified' price of IPO shares under the book building method.


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