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27 Mar. 2007Implementing Book Building on the cards Raising fund from Stock Market is cost effectiveSays, First Vice President Mr. Naisiruddin Ahmed ChowdhuryDhaka Stock Exchange in collaboration with Chittagong Stock Exchange organize a courtesy meeting today 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, Vice President Mr. Ahmad Rashid Lali, and Chief Executive Officer Professor Salahuddin Ahmed Khan and from Chittagong Stock Exchange the First Vice President Mr. Nasiruddin Ahmed Chowdhury and Chief Executive Officer Mr. A B Siddique represented the bourses.
Mr. Nasiruddin Ahmed Chowdhury in his welcome address said, “Chittagong Stock Exchange has initiated to work together with DSE on some major development issues for the development of our Capital Market. I believe this initiative will bring prosper and dynamism in our Capital Market. Our market needs concerted efforts from different stake holders including Government to expand our market size and to be competitive with global perspectives. If you kindly set your eyes to our neighboring countries, you may experience that the major industries for their project financing are largely contributed by their capital market. I believe sourcing of finance from capital market would be most cost effective for an entrepreneur, but our realization in these aspects is lagging because of various reasons. However, we urge to our business elites to look into our capital market vigorously for their project financing.” He further said that, “Our present government has been relentlessly supporting and encouraging bringing good ventures to our market, we all appreciate to the Finance Adviser’s kind support and endeavors. In this regard we also request business community to participate in our capital market by bringing their good companies for the greater interest of the economy. I urge upon again to my business elites and friends, please share your profits with our general citizens, cooperate them to augment their purchasing power, enable them to mobilize their savings through participation of purchasing your shares and finally help them to get rid of poverty through this process.” Mr. Md. Abdullah Bokhari President of the Dhaka Stock Exchange said, “Our Stock Market has become entrepreneurs’ friendly. Entrepreneurs’ effective rate of cost of capital from stock market would be cheaper than the 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, Vice President of Dhaka Stock Exchange 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 Salauddin Ahmed Khan, Chief Executive Officer in his informative 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 DSE-CSE and Citi Group N.A. 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.” 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. AKM Shahroze Alam |
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