B Mirror Report: New initial public offering (IPO) proposals are unlikely to be submitted for at least the next five months following the implementation of revised public issue rules, according to market insiders.

Although the new regulations came into effect on December 30 last year, companies have shown limited interest in going public. So far, no company has submitted an IPO application using audited financial statements for 2025.

Under the current rules, companies can apply for an IPO based on annual, half-yearly, or quarterly audited financial statements. However, most firms prefer to submit proposals based on audited annual reports.

The revised rules allow companies to submit IPO proposals within 120 days of the end of their financial year. For companies following the calendar year, the deadline is April 28. However, issue managers believe it is highly unlikely that any new proposals will be submitted within this timeframe.

Preparing financial statements typically takes at least one month after the end of a fiscal year, followed by additional time for auditing and board approval. The entire process generally takes no less than two months, making it difficult to meet the current deadline.

Market insiders say completing audits within one month is not feasible. As a result, companies may need to wait at least another five months before submitting IPO proposals based on audited financial statements for the 2026 fiscal year.

Previously, IPO approvals often took a long time, in some cases more than a year. The revised rules aim to speed up the process by setting specific timelines for stock exchanges, issue managers, and other stakeholders.

Under the new rules, the Bangladesh Securities and Exchange Commission (BSEC) will approve or reject IPO proposals within 20 days based on recommendations from the stock exchange.

The entire IPO process must be completed within 40 days under the fixed-price method and within 53 days under the book-building method.

The updated rules also allow financially strong companies to claim higher premiums. Under the previous system, pricing limitations often prevented firms from achieving fair valuations.

The revised framework was introduced based on feedback from market participants to reduce complexities and delays in the listing process, including the use of multiple valuation methods.

However, no company has yet submitted an IPO proposal under the new rules, indicating continued stagnation in the market. The last IPO proposal was submitted by Techno Drugs in March 2024, and no new companies have entered the market since then.