Listing of 10 blue-chip cos: SoEs commit, MNCs to seek board approvals

Ten state-owned enterprises (SoEs) and multinational companies (MNCs) have agreed in principle to offload a portion of their shares on the stock market, following board-level approvals or renewed commitment to seeking them.

The move is part of the government's broader effort to deepen the capital market and rebuild investor confidence by bringing blue-chip companies to the bourses through direct listing.

The development emerged from a meeting between company representatives and Finance Adviser Dr Salehuddin Ahmed at the Bangladesh Secretariat on Wednesday, officials said.

Officials said representatives of the SoEs at the meeting pledged to proceed with the government's plan to list leading companies on the stock exchanges through direct listing.

Representatives of the MNCs, however, told the meeting that similar initiatives in the past had failed to secure approval from their boards of directors.

They said they would once again seek board approval to offload shares in line with the government's request.

Senior officials from Karnaphuli Gas Distribution Company Ltd, Karnaphuli Fertiliser Company Ltd (KAFCO), North-West Power Generation Company Ltd, Pashchimanchal Gas Company Ltd, Syngenta Bangladesh Ltd, Sylhet Gas Fields Ltd, Unilever Bangladesh Ltd, Synovia Bangladesh Ltd, Novartis (Bangladesh) Ltd and Nestlé Bangladesh PLC attended the meeting.

Commerce Adviser, Energy Adviser and Industries Adviser were also present, alongside the special assistant to the Chief Adviser for the finance ministry, the secretary of the Financial Institutions Division, and the heads of the Investment Corporation of Bangladesh (ICB) and the Bangladesh Securities and Exchange Commission (BSEC).

Speaking to reporters after the meeting, Dr Ahmed said the stock markets were now largely under regulatory control and that the focus should shift to improving market depth and restoring investor confidence.

"To restore confidence, the market needs a supply of quality stocks," he said.

Asked whether a timeline had been set for the listings, the finance adviser said companies had been asked to offload shares as soon as possible. "We want to start the process without delay," he added.

He also said he had received letters from the Ministry of Industries expressing interest in offloading shares of companies under its jurisdiction.

ICB Chairman Prof Abu Ahmed said the government's intention to list these companies was driven by public interest.

"If Nestlé can be listed on the Bombay Stock Exchange, why not in Dhaka?" he asked, noting that a portion of Unilever's stake is listed on Mumbai and ranks among the top ten stocks there.

Both companies are also listed on the stock markets of Pakistan and Thailand, he added.

Prof Ahmed suggested that incentives or tax benefits could be considered to encourage MNCs to list in Bangladesh. "But if they refuse to offload shares, taxes on their earnings should be increased," he said.

"It is a very simple matter. Otherwise, we will have to wait many more days to get them listed," he added.

Asked whether the companies had agreed to divest shares, Prof Ahmed said they had been given a clear message about public expectations.

He added that the heads of SoEs had agreed in principle to divestment, though implementation often faced unnecessary delays. "I see no reason for delaying the direct listing of companies," he said.

syful-islam@outlook.com