The Dhaka Stock Exchange (DSE) is set to introduce a faster and more digitised Initial Public Offering (IPO) process that will allow companies to be listed within six months, said its Acting Managing Director and Chief Operating Officer Mohammad Asadur Rahman.
He made the remarks during a discussion with the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) at the DSE Tower on Wednesday.
“Previously, the IPO process used to take two to four years. With the upcoming digital transformation, it will now be completed in less than half that time,” Asadur said.
He said new IPO rules are expected to be approved soon, which will further enhance the authority of stock exchanges. “DSE is undergoing a major digitalisation drive. As part of our customer-centric service, we aim to make the entire IPO process online,” he added.
As part of this effort, the DSE is introducing a Central Digital Submission System that will allow listed companies to submit all information, including price-sensitive disclosures, shareholding changes and management updates, in one place.
For years, the shortage of new listings weakened the supply side of the market, Asadur noted, adding that the DSE is now focusing on attracting fundamentally strong companies to the bourse.
Through its three platforms — the Main Board, SME Board, and ATB Board — the DSE is creating long-term financing opportunities for entrepreneurs, which he said will help reduce the country’s overreliance on bank-based financing.
“DSE is now ready to offer one-to-one services. Any company interested in listing on the Main Board or SME Board will receive dedicated support from our team,” he said.
Asadur described a strong capital market as one of the key pillars of sustainable economic growth, saying DSE’s transformation aims to bring the industrial sector more closely into the country’s capital market ecosystem.
BCMEA Senior Vice President Md Mamunur Rashid lauded the DSE’s move to engage directly with the business community to discuss listing procedures, timelines, and challenges, calling it a “commendable initiative” that will help restore investor confidence.
He noted that while Bangladesh’s economy has achieved significant growth over the past five decades, equity financing remains limited. “Around 98 percent of industrial investments still come through banks and financial institutions, which poses a major obstacle to building a sustainable capital market,” Mamunur said.
He suggested simplifying the IPO process, shortening the checklist for listing documents, and making tax and dividend policies more investment-friendly.
Mamunur also pointed out that compliance costs, including fees for issue managers, auditors, and regulatory submission, often burden companies. “Holding AGMs, filing regulatory documents, and paying various fees create financial and administrative challenges,” he said.
He, however, praised the recent digital initiatives by the DSE and related agencies — such as online AGMs, hybrid meetings, and electronic filings — for significantly easing those burdens.
Speakers at the discussion also recommended strengthening corporate governance practices, reducing compliance costs, ensuring greater transparency in the activities of issue managers, and organising international roadshows to attract foreign investors.