Finally, after a decade of waiting, the process of listing state-owned businesses on the stock exchange has begun. This year, the Dhaka Stock Exchange (DSE) expects at least two government companies to go public. In addition, plans are underway to launch at least ten other state-owned businesses in the next year.
Market analysts view this initiative, which is being implemented under the guidance of Professor Muhammad Yunus, the chief advisor to the interim government, as a significant development. They believe this move will be crucial in restoring investor confidence and enhancing market depth. Furthermore, it will ensure greater transparency and accountability in the financial operations of government entities.
According to DSE sources, discussions are currently taking place with approximately 20 companies, including Unilever Bangladesh, Karnaphuli Fertilizer Company (Kafco), Nestle Bangladesh, Synovia, Novartis, Syngenta, Paschimchanchal Gas, North-West Power Generation, Sylhet Gas Fields, Barapukuria Coal Mining, Jalalabad Gas Transmission, Karnaphuli Gas Company, Sadharan Bima Corporation, and Jiban Bima Corporation.
A formal request has already been submitted to the Health Ministry to list Essential Drugs, a government-owned pharmaceutical manufacturer. Concurrently, initial talks have been conducted with Ashuganj Power Station Company, which has expressed interest in entering the market.
At present, only 20 government companies are listed on the stock exchange, representing a mere 7.81 percent of the total market capitalization. The last government company to enter the market did so in 2012. Since that time, the sector has effectively stagnated, with no new companies being introduced. Market experts are optimistic that this new initiative will positively influence investment growth in the market and help to alleviate long-standing distrust.
Experts assert that merely listing new companies is insufficient; to truly restore investor confidence, it is essential to establish sound governance in the market, implement policies effectively, and ensure that…
