ipo performance of bd.pptx

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Welcome to The resentation

IPO process analysis andperformance evolution

http://www.acclaimimages.com/_gallery/_pages/0480-0906-0819-1508.html







Prepared fo r

Dr. M Farid AhmedProfessor

Department of Finance

University of Dhaka



We are………..

Sl no. Name ID

1 Abhijit Kumar Saha 15-114(BBA)

(MBA)2 Fahmina Tasmin Munia 15-144(BBA)

657(MBA)



Presented by……………..

Fahmina Tasmin Munia ID:15-

144(BBA)

657(MBA)



What is IPO?

Public Offering (PO) means collecting funds for

capital from the public.

Mainly, there are two types of public offering:

Seasoned public offering

Initial public offering (IPO).

Types of IPO

Fixed pricing method

Book building system



ADVANTAGES OF IPO

Companies

loan facilities

avoiding fears of

easy take-over reduces the

reliance on debtfinancing

gains national andinternationalimportance

Investors

benefited from the

enhancement of

the company'soperational

efficiency.

no secrecy of the

price realization

Sock Exchange

protect the interest

of the investors



DECISION OF IPO

Issuer (Submission of

Prospectus)

Expert Panel

Department of

Listing Affairs

Securities &Exchange

Commission

Consent for

IPO/rejected

DSE Board

Q

u

e

ri

e

s C

o

n s

e

nt

Recommendation

Recommendation for Listing



IPO performance evaluation

IPO subscription throughout years2007-2012 are shown below

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012

Series1 IPO

Subscription



COMPANIES come into market

through IPO in 2012 Sl.No. Issuer Paid up Capital Post-IPO Paid IPO/Issue Size IPO Premium Total IPO Size

Tk. (Pre-IPO) up capital (TK.) Tk. (@FV) (TK.) (TK.)

1 Envoy Textiles Limited 1,000,000,000 1,900,000,000 300,000,000 600,000,000 900,000,000

2 Generation Next Fashions Limited 871,650,000 1,171,650,000 300,000,000 0 300,000,000

3 Aamra Technologies Limited 203,745,120 721,473,120 215,720,000 302,008,000 517,728,000

4 Unique Hotel & Resorts Limited 2,300,000,000 4,250,000,000 260,000,000 1,690,000,000 1,950,000,000

5 Saiham Cotton Mills Limited 877,500,000 1,827,500,000 475,000,000 475,000,000 950,000,000

6 Bangladesh Submarine Cable

Company Limited

875,091,700 1,960,091,700 310,000,000 775,000,000 1,085,000,000

7 GBB Power Limited 304,999,900 1,124,999,900 205,000,000 615,000,000 820,000,000

8 NCCBL Mutual Fund-1 150,000,000 650,000,000 500,000,000 0 500,000,000

9 GPH Ispat Limited 700,000,000 1,300,000,000 200,000,000 400,000,000 600,000,000 10 Padma Islami Life Insurance

Limited

180,000,000 300,000,000 120,000,000 0 120,000,000

11 GSP Finance Company

(Bangladesh) Limited

276,460,800 776,460,800 200,000,000 300,000,000 500,000,000

12 First Bangladesh Fixed Income

Fund

2,000,000,000 4,500,000,000 2,500,000,000 0 2,500,000,000

13 NLI First Mutual Fund 100,000,000 357,580,000 257,580,000 0 257,580,000

14 AB Bank First Mutual Fund 300,000,000 300,000,000 0 0



COMPARISON OF MARKET

RETURN &SECURITIES

RETURN

AB

BANK

1ST MF

NLI 1ST

MF

1ST BD

FIXED

I.F.

GSP

Finance

Co.

GPH

Ispat

PADMA

Islami

L.I.L.

NCCBL

MF

GBB

POWER

Saiham

Cotton

BD

Submari

ne

Aamra

Tech

Unique

Hotel &

Resorts

Genera

tion

Next

Fashion

s

Limited

Envoy

Textiles

Limited

MEAN 0.009

-

0.006 0.011 -0.033

-

0.055

-

0.075 0.024

-

0.007 0.082 0.161 0.180 0.140 0.344 0.524

S.DEV. 0.079 0.099 0.059 0.064 0.111 0.168 0.037 0.203 0.276 0.277 0.508 0.286 0.000 0.000

Average Market Return=.34%



-0.2

-0.1

0

0.1

0.2

0.3

0.4

0.5

0.6

Market Return vs Securities return

Series1

Series2

Linear (Series2)



Presented by……………..

Abhijit Kumar Saha

ID:15-114(BBA)

(MBA)



Comparison Between Market

Variance &Securities VarianceAB

BANK

1ST MF

NLI 1ST

MF

1ST BD

FIXED

I.F.

GSP

Finance

Co.

GPH

Ispat

PADMA

Islami

L.I.L.

NCCBL

MF1

GBB

POWER

Saihal

Cotton

BD

Submarin

e

Aamra

Tech

Unique

Hotel &

Resorts

Generati

on Next

Fashions

Limited

Envoy

Textiles

Ltd.

DGEN

S.DEV. 7.91% 9.89% 5.94% 6.39% 11.10% 16.83% 3.67% 20.33% 27.59% 27.75% 50.83% 28.60% 0.00% 0.00% 6.72%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Market Var. vs Securities Var.

S.DEV.

Linear (S.DEV.)



Correlation Between DGEN and

IPO Floated Securities

DGEN

AB

BANK

1ST MF

NLI

1ST

MF

1ST BD

FIXED

I.F.

GSP

Finance

Co.

GPH

Ispat

PADMA

Islami

L.I.L.

NCCBL

MF1

GBB

POWER

Saihal

Cotton

BD

Submarine

Aamra

Tech

Unique

Hotel &

Resorts

DGEN1.00 0.19 0.36 0.37 0.41 0.46 0.42 0.49 0.56 0.54 0.60 -0.09 0.52

-0.20

0.00

0.20

0.400.60

0.80

1.00

1.20

Correlation between DGEN & IPO floated securities



PROBLEMS REGARDING IPO

PROCESS

1. THE COST ASPECT:

2. THE TIME ASPECT3. DISCLOSURE OF INFORMATION

4. LOOSING FLEXIBILITY

5. CURRENT IPO PROCESS



Recommendation & Conclusions

1. Benefits of IPO should be highlighted so that more firms become willing

for listing in the stock market.

2. The whole procedure of IPO process should be arranged quickly enough

by which new companies could be inspired to raise necessary fund in atimely manner.

3. The rules of Direct Listing regarding the disposal of shares need

modification.

4. Information documents should be analyzed carefully to find out any

discrepancy in the information provided and thereby prohibit thefundamentally weak company into listed in the stock exchange.

5. To make the market more efficient, weak companies should be de-listed

by the listing authority.

ipo performance of bd.pptx

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