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NRB Equity Management Limited is providing market based fund raising services to corporate clients and offering:

  1. IPO Management services.
  2. Repeat Public Offering (RPO) management services.
  3. Rights Issue Management services.
  4. Debt Issue (Bonds/Debentures) management services (including subordinated bonds issuance services for banks and FIs.).
  5. IPO on Book Building.
  6. Preference Share issue management services.
  7. Securitized debt products issuance.

Our team has more than 40 IPO deal completion experience in the market place. The issue management work experiences can be found in our Work Experience Section.

Why Initial Public Offering (IPO)?

  1. It helps companies to mobilize capital from small savers at lower cost.
  2. Lower cost of capital compered to bank finance.
  3. Improve company sales & branding.
  4. Improves accounting & corporate governance culture in the company.
  5. Huge income tax benefit ( See table below ):
  6. No mortgage is required compared to bank finance.
  7. No dividend payment required if sustain loss.
  8. No fear of accrued/penal interest payment like banks.
  9. Help companies share price discovery and creates liquidity of stock’s.
  10. Long term capital gain on shares.
  11. Improve debt/equity ratio.
  12. As for bank loan, a company has to pay back both principal and interest thereby assume a huge fund pressure at initial years but no principal repayment in case of money taking from stock market. Only dividend is payable if it is a debt instrument.
  13. Quick expansion capital can be mobilized through right issue of capital/shares.

Eligibility for Initial Public Offering (IPO) of any company:

  1. Minimum Paid-up Capital requirement is Taka 18 crore (USD 3.75 Million) of which Taka 15 crore (USD 2.25 Million) can be existing paid up and Taka 12 crore (USD 1.5 Million) can be raised from the public market.
  2. The company should have minimum 2 years in commercial operation.
  3. No accumulated loss should be in the company.
  4. Minimum 5 Board of Directors (before IPO) and 7 Directors (after IPO).
  5. Corporate Governance Rules 2006 should be maintained and followed.
  6. Accounts should be audited by BSEC Panel Auditor.
  7. Income Tax and VAT should be paid on a regular basis.
  8. Need to appoint Issue Manager, Underwriter, and Banker to the issue etc.
  9. All assets should be registered or leased in the name of the company.
  10. Valuations should be done by the BSEC Panel Valuer.
  11. Account should be presented or kept as per the “International Accounting Standards”. Also, the accounts should be Audited in
    accordance with the International Auditing Standards.
  12. BSEC IPO rules 2015 should be complied with.
  13. Credit Rating Report is required to issue shares at Premium.
  14. Book building method need to be followed if investors want premium.

Purpose of IPO

  1. To raise equity/debt capital.
  2. To reduce bank borrowing.
  3. To improve debt equity ratio.
  4. For BMRE purpose.
  5. Capacity expansion.
  6. Working Capital requirement meet up.
  7. For banks, FIs, Insurance companies regulatory equity capital requirement fulfill.

Initial Public Offering (IPO) Costs & Expenses

The likely costs and expenses for IPO issuance in the market place could be innumerated below:

  1. Issue Manager fee.
  2. BSEC fees (application + consent fee).
  3. CDBL fees and expenses.
  4. Underwriting commission.
  5. Bankers to the Issue commission.
  6. Credit Rating fee (if shares issued at premium).
  7. Stock Exchange listing fee.
  8. Post Issue management expenses.
  9. Capital Raising fee.
  10. Miscellaneous expenses.