Listing Procedure

Listing Procedure

General stages and relevant processes of listing with DSE through IPO Decision to go Public: Take Board decision to go public Appoint Issue Manager(s) from Bangladesh Securities and Exchange Commission (BSEC) approved list Decide method of IPO with assistance from Issue Manager – Fixed Price or Book Building In case of IPO under Book Building - Get Accounts audited by BSEC approved Panel of Auditors Initiate process for credit rating - Mandatory for Bank, Insurance, NBFI and any issue with offer price at premium Develop a Company Website with publications of Company Financials Prepare Draft Prospectus: Assist Issue Manage in preparing Draft Prospectus in accordance with Securities and Exchange Commission (Public Issue) Rules, 2006 Appoint Underwriters In case of IPO under Fixed Price Method fix a offer price and justify the same in accordance with rules mentioned in the Securities and Exchange Commission (Public Issue) Rules, 2006 In case of IPO under Book Building Method prepare a Information Memorandum with Financials for Road Show and Indicative Price Determination in accordance with rules of the Securities and Exchange Commission (Public Issue) Rules, 2006 Host road shows with Eligible Institutional Investors (EII) Collect offers from EIIs Finalize a indicative price Apply to BSEC for Public Offer: Apply to BSEC for IPO under Securities and Exchange Commission (Public Issue) Rules, 2006. Submit copies of Draft prospectus along with relevant documents to Exchanges simultaneously. Fulfill any discrepancy identified by BSEC/Exchange in Draft Prospectus and respond to any queries made by the Exchanges. Assist Issue Manager in updating draft prospectus to comply with or fulfill deficiencies identified by BSEC/Exchange. Bidding by EIIs (for Book Building only): Apply to Exchanges for holding bidding with BSEC consent for bidding Sign agreement to share Book Building Software for bidding and payment of fees thereof Collect bidding fee from EIIs On completion of bidding collect allotment list for EII and cut-off price from the Exchanges Submit the details of bidding alongwith revised drat prospectus to BSEC for approval IPO Approved: Collect approval letter issued from BSEC Print Abridged version of the approved and vetted prospectus in widely circulated two Bengali and two English News Papers Print Final Prospectus Publish Soft Copy of vetted Prospectus on Company Website Apply for Listing with Exchanges in accordance with regulations of the Listing Regulations of the Exchanges Appoint a Post Issue Manager (customs not mandatory) Subscription and Lottery: Start subscription for IPO through designated Stock Brokers/Merchant Bankers Assist Issue Manager and Post Issue Manager in completing formalities related to subscription, lottery, refund and crediting shares to successful allottees After Subscription period submit subscription status to BSEC and the Exchanges where the issuer wishes to get listed In case of over subscription hold lottery Allotment and Refund: Process all subscriptions and lottery results Distribute electronic Allotment letters and Complete Refund Process After distribution of allotment letters/completion of refund submit a compliance report before the Commission and the Exchanges. If issue was not subscribed by minimum required quantity refund the subscribers. Listing Approval by the Exchanges: After distribution of allotment letters/refund warrants and compliance of other requirements, the application for listing by the Issuer is placed for listing approval Listing is approved or rejected Credit Share/Units: If listing is approved by the Exchange, issuer shall apply to CDBL for crediting tradable shares/units as per allotment. Commencement of Trading of scrips on the Bourse(s): Once shares/units are credited and confirmed by CDBL, commencement date for trading is announced by the respective Exchange. General stages and relevant processes of listing by offloading of shares of companies through Direct Listing Process Take Board decision for Offloading shares Take shareholders resolution in respect of disposal of Shares Get relevant approval from concerned ministry or any other regulatory body, if any Appoint Issue Manager, Designated Brokers Prepare Information Document in accordance with Regulations 8 to 13 of the Dhaka Stock Exchange (Listing) Regulations, 2015 Submit Information document to the respective Exchanges and BSEC and apply to the Exchanges for offloading of shares through direct listing Comply with deficiency letter issued by BSEC, if any Comply with any deficiencies identified the respective Exchanges Update Information document and get the same vetted by the respective exchanges Exchange(s) approve Listing, if no contrary opinion is received from BSEC Publish the Information Document in two in at least two widely circulated national dailies (one in Bangla and the other in English). Post the full information document or public offer document on the web site of the Commission, the Exchange and the Issuer. Submit printed Information Document to Exchanges and BSEC Trading shall commence at least seven days after publication of information document Make shares to be offloaded available to designated stock brokers and provide irrevocable sale orders for the total quantity made available. The existing shareholders shall offer for sell at least 25 (twenty five) percent of the shareholdings in the company within 30 (thirty) trading days from the date of commencing the normal trading. No sponsors or directors of the company shall, subject to compliance of other provisions in respect of shareholding, sell more than 50% of his existing shareholdings until the company holds the annual general meeting after completion of one full accounting year of the company upon listing with the Exchange. The sponsors or directors shall be restricted from buying shares for 1 (one) year from the date of direct listing. Report broker wise offloading status to the exchanges and BSEC on daily basis until completion of sale of the targeted 25 (twenty five) percent shareholdings.