Govt pushes 10 state firms, MNCs to list on bourses

The interim government has sent a strong message to 10 companies, including several multinationals and state-owned firms, urging them to list on Bangladesh's stock exchanges, while the relevant ministries have agreed to offload a portion of their shares in state-run companies.

"Our main target is to bring state-owned companies and multinational companies (MNCs) into the share market, which will boost investor confidence," Finance Adviser Salehuddin Ahmed told journalists yesterday after a meeting with advisers and secretaries from the industry, commerce, and energy ministries.

The government has initially identified ten companies for listing -- Unilever, Nestlé, Novartis, Syngenta, Synovia (formerly Sanofi Bangladesh), Karnaphuli Fertilizer Company, Pashchimanchal Gas Company, North-West Power Generation, Sylhet Gas Fields, and Karnaphuli Gas Distribution.

The adviser said that the companies have agreed "in principle," but the final decision rests with their boards. "It is not possible to force them to list, but their boards will have to make the decision," he added.

Asked why the listing might succeed this time after being long overdue, the adviser said, "No government has gone this far, and this time ministries have agreed to offload."

He added that the industry ministry, which controls most state-run companies, is supportive of the listings, and other ministries have also agreed. "Now, the respective boards will make the decision. I have ordered them to do it fast," the adviser said.

Abu Ahmed, an economist and chairman of the Investment Corporation of Bangladesh, welcomed the move. "A strong message has been sent to MNCs that Bangladesh wants them to list. For state-run companies, the respective ministries have agreed to list them, but the problem is that they are taking time. I don't see any reason for the delay in direct listing," he said.

He added, "If Nestlé can be listed on the Bombay Stock Exchange, then what is the problem with listing here? Unilever is also listed on the same exchange and other international exchanges. If they want tax incentives, they can be offered. If they don't get listed, higher taxes should be levied."

Officials said the government, which holds roughly 40 percent stake in most multinationals, plans to offload at least five percent of shares to the public. Currently, 13 state-owned firms are listed, with Bangladesh Submarine Cables being the last company to join the bourse in 2012.