A study on the impact of going public on RAK Ceramics (Bangladesh) Limited

Abstract

BRAC EPL Investments Limited has made its mark in Bangladesh in a matter of a few years by providing assistance to thousands of clients across the country. It has excelled in the provision of all its services till date, with its IPO issue management services being one of them. The purpose of writing this paper was to gain a thorough understanding of this particular service that is provided by the investment banking department by looking into the process that a company has to follow to enlist itself on the stock exchange and the role that BRAC EPL has to play in such a process. Furthermore, to acquire a more practical knowledge of the topic, a study was conducted on RAK Ceramics (Bangladesh) Limited, a client of BRAC EPL who was provided assistance in its IPO issue in 2010. The major part of this study consists of a section that investigates whether the move to go public turned out to be a financially sound decision for the company/client. The results of the study show that though the company’s growth rate in terms of net sales and assets acquisition had fallen after its IPO issue, the ratio analysis of the company shows that its performance gained substantial improvement after it went public. Thus, it can be said that going public turned out to be a right decision taken by the company’s management.