IPO process analysis of Dhaka Stock Exchange Limited

Abstract

At some points of its business operation every company needs to raise money. To do this, companies can either borrow the same from somebody or raise the amount by selling ownership of the company. The later is known as issuance of stock. When a company go for public issue for the first time it is known as Initial Public Offering (IPO). IPO can be made through fixed price method, Book Building method and direct listing. In my report I have worked with the IPO Procedure Analysis. An initial public offering (IPO)or stock market launch is the first sale of stock by a company to the public. Fixed price method and Book Building method are two methods prevalent to list a company in Dhaka Stock Exchange Ltd. IPO's are the first sale of stock by a private company to the public. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market. These listing methodologies have been set by "Securities and Exchange Commission (Public Issue) Rules, 2006". The concept of IPO process is very common in our country. In this report I have tried to shown the overall IPO procedure of our country, advantages, problems of IPO etc. This report consists of three parts & a short vision of each part is given below: The history of Dhaka stock exchange, products offered by DSE, operational network organogram vision and mission of DSE , which I have mentioned in part one. By studying this Section, an overall idea about the DSE will be generated. The Second part of this business report is about the description of my job which I have done during my internship period. My specific job responsibilities, different aspects of job performance and critical observations and recommendations are mentioned in this Part. The Third part comprises the project part which is IPO Procedure Analysis of DSE. This part is classified in different aspects like summary, description of the project which comprises objective of the project, methodology, limitations. The main body of the project is four chapters. Chapter one describes an overview of capital market of Bangladesh. Chapter two contains the IPO procedure analysis and departmental functions of Listing Affairs department. Chapter three contains finding and analysis and in chapter four there is conclusion and recommendations.