Five more government institutions are coming to the capital market very soon. Finance Minister AHM Mustafa Kamal said two companies listed in the capital market would offload the shares.
He said this at a press conference on Sunday (Feb. 2) at the Finance Minister's office in Agargaon.
The Minister said that we have instructed seven profit earning government institutions to come to the capital market quickly. These companies will complete all audit related activities within the next two months. Then they will apply to come to the capital market. And companies that are listed on the capital market will be more likely to drop shares. We have decided to gradually bring them to market as a preliminary step from 10 percent to 25 percent.
The government entities that are listed through the initial public offering (IPO) are - North West Power Generation Company, Electricity Generation Company of Bangladesh Limited (EGCB), Ashuganj Power Station Company Limited, B R Powerjen Ltd. (BRPL), Gas Transmission Company Limited (GTCL). Titas Gas Transmission and Distribution Company Limited (TGTDCL) and Power Grid Company of Bangladesh will offload the shares.
Finance Minister AHM Mustafa Kamal said companies need to be sustainable. First we need to assess the balance sheets of each company. Asset prices of 10 years from now, and the present prices are not the same. Now we have to review them at the current price. We have to revise the amount of assets. Companies need to give the time it takes to revalue. I think it will take two months to revise the amount of assets.
He added that seven companies could work from the private sector and they could also work from the ICB (Investment Corporation of Bangladesh). We want to bring seven government institutions to the capital market soon. For this I will evaluate the assets with seven firms. So that the work could be done quickly. We will be able to access the assets of seven companies in two months time. Shares will be valued based on the net asset standing.
Asked how many days these companies will take to come to the market, he said, "Overnight they cannot be brought. It will take some time." However, we need institutional investment to strengthen our capital market. Those who are in our stock market are there according to their own. Like the developed countries, the capital markets of our country will have to be broad based. For this, we have to bring institutional companies to the market. I said earlier that government institutions should be brought into the capital market to strengthen the market. The decision was taken today to strengthen the capital market. The balance sheet of the seven companies will now have to be estate. "
From now on, the finance ministry's secretary has been given the responsibility of overseeing the bringing of government institutions into the capital market. Earlier, the secretary of the finance ministry's bank division was in charge of the capital market.