Dhaka Stock Exchange in
collaboration with Chittagong Stock Exchange arranged a courtesy
meeting on March 25,2007 in Chittagong for the local business
elites and personalities to make them aware on the benefits
of listing on the bourses and understand the different financial
needs under new economic realities.
The President of the Dhaka Stock Exchange Mr. Md. Abdullah Bokhari,
Senior Vice President Mr. Ahmad Rashid Lali, and Chief Executive
Officer Professor Salahuddin Ahmed Khan represented the DSE
while First Vice President Mr. Nasiruddin Ahmed Chowdhury and
Chief Executive Officer Mr. A B Siddique represented the CSE.
Mr. Md. Abdullah Bokhari said, "Our Stock Market has become
entrepreneurs' friendly. Entrepreneurs' effective rate of cost
of capital from stock market is much lower than the interest
rate of bank financing. Bank finance normally costs an entrepreneur
at least 15% to 16% which may cost 11% to 12% if raises from
stock market."
Mr. Ahmad Rashid Lali, said, "Our recent experience of IPO subscription
indicates that any kind of large project financing through stock
market is not a hindrance now. The existing BO Account Holders
can easily subscribe Tk. 1000 to 1500 crores project or beyond.
He further said "Introduction of Book Building Method for IPO
subscription is a widely practiced in the developed countries
that would ensure better price for the shares of the entrepreneurs
than the existing IPO process."
Professor Salahuddin Ahmed Khan, in his speech, said, "Our entrepreneurs
can interact with the foreign investors to set up joint venture
in the country. A huge gathering of foreign investors will take
place in the two-day international investors' conference due
to be held in May in Dhaka under joint arrangement of DSE and
Citigroup. The interaction would attract foreign investment
in Bangladesh reducing dependency on foreign aid in the country's
economic development and will disseminate information on Bangladesh's
overall economic potentials, untapped capital market and reforms
in the last decade, current legal and governance frameworks,
and public and private foreign investment opportunities with
special focus on some sectors of interest such as power, telecom,
textile, pharmaceuticals and financial services. Referring to
other countries, he said stock market is considered as the prime
source of financing Enterprises entering market. They can benefit
significantly after their listed securities shows good result.
Refinancing of new or existing project will not be a problem
for any company and market will be willing to finance them even
at premium whenever they need. Only thing the entrepreneurs
need is fair disclosure of the status of their projects.
Mr. Nasiruddin Ahmed Chowdhury in his welcome address said,
Chittagong Stock Exchange is working together with DSE on major
development issues for the development of Capital Market. He
further said that this initiative will bring prosperity and
dynamism in the Capital Market. Market needs concerted efforts
from different stake holders including Government to expand
the market size and to be competitive with global perspectives.
Among the elite entrepreneurs in Chittagong, Mr. Khalilur Rahman,
Chairman of KDS Group, Mr. Jahir Uddin, Director & CEO Mostafa
Group, Mr. Yakub Ali, Chairman Diamond Cement Ind. Ltd., Mr.
Khan Md. Nader, Chairman of Pedrollo Group, Mr. Abdul Gaffar
Dubash, Chairman of Orbit Pharmaceuticals Ltd., Mr. Mohd. A
Salam, Chairman of Asia Paper Mills Ltd., Mr. Mohammed Amirul
Haque, Chairman of Premier Cement Mills Ltd., Mr. Farid Ahmed
Chowdhury, Director of Union Insurance Ltd., Mr. Md. Abdul Awal,
Chairman of Bengal Shipping Line Ltd., Mr. Nurul Huda of Chairman
Base Textiles Ltd., Mr. A Salam, Chairman Well Group, Dr. Moinul
Islam Mahmud, Chairman Equity Properties Ltd., Mr. Salim Ahmed,
MD Elite Group, Mr. Ali Hussain Akbar Ali, Chairman BSRM, Engr.
Ali Ahmed, Chairman Astech Ltd., Mr. Tarek Kamal, Director of
Orbit Pharmaceuticals Ltd, Mr. Shamsul Alam CFO, PHP Group and
Mr. Helal Uddin Ahmed, Chairman of Multi Safh Bags Ltd. were
present in the meeting.
