direct listing

Direct Listing is a doorway to list with the Exchange for the company who does not require to increase its existing paid up capital but want to list its securities for prestige, liquidity benefit or any other reasons and intent to off load the existing shares of the shareholders for privatization purpose.

• Eligibility criteria for direct listing : The public limited company having minimum paid up capital of taka 100(one hundred) million may apply for direct listing to CSE if it is/has
  • No accumulated loss
  • Regular in holding the AGM
  • in commercial operation for at least immediate last five years and
  • has profit in three years out of the immediate last five completed accounting/financial years with steady growth pattern.
• Application for Listing: The application fee for Listing is Tk. 10,000/-(ten thousand). The Exchange examines among others the following documents while giving approval to the listing:
  • Audited financial statements for the last five years.
  • A Credit rating report issued by the credit rating company registered with the Commission with minimum investment grade of "BBB".
  • Due diligence certificate from the directors
  • Status of loan including information concerning loan default
  • in commercial operation for at least immediate last five years and
  • 'Information Document'
• Information about the company to the General Public :The company shall prepare an 'Information Document' for the purpose of communicating to the general public the information required to an investor for their investment decision. 'Information Document' shall be published in at least two widely circulated national dailies minimum 7 (seven) days before commercial trade upon listing by the Exchange.
• Disposal of Shares : The existing shareholders of the concerned company shall sell the shares through the Exchange upon listing. At least 10% of their shareholdings in the company must be offered for sell to the public within 30(thirty) working days from the date of listing.
  
  However they are not permitted to sell more than 50% of his existing shareholdings until
  
  the company holds the annual general meeting after completion of one full accounting year of the company upon listing with the Exchange. Relevant resolution of the shareholders in the general meeting of the company in this respect is to be submitted to the Exchange while applying for listing.
• Trading and Settlement procedure: Dematerialization of the securities is a must for
  
  direct listing. Compliance of CSE listing regulations and any other securities law by the listed company and the procedure of trading and settlement of their securities transactions are same as applicable to any other listed securities of the Exchange.