When a company sells stock for the first time in the capital market it is called Initial public offering or IPO in short.
A firm can raise fund for its operation by issuing either equity or debt. When a company attempts to raise capital for its operation through equity it is called equity capital. The people who purchase the stocks of that particular company get an ownership, and voting right for the major company decision. A new company cannot issue shares in the secondary market at the beginning. At first the company has to offer shares at the primary market. The market in which initial public offer is done is called primary market.
IPO Application Form
The issue of IPO is handled by Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital markets (DSE and CSE). According to the requirement of BSEC, the investors have to apply for the IPOs through specific application forms.
The application forms will be available in the IPO issuing company’s website. Investors will find the application from in both word and PDF forms. The forms come in various categories such as Resident form, NRB form, NRB form and House form.
Components in the IPO Application Form
A general IPO application form requires information regarding number of shares to by and the value per share. The Beneficiary Owner Account No. is must, otherwise the application will be deemed as invalid. The investors will have to put their personal information such as Name, Father’s name, Mother’s name, Date of Birth, Occupation, Nationality, and Mailing Address.
For refund the investors will have to write the full and correct name of the bank and corresponding branch. The investors must put the name of a scheduled bank. If the name of any non-scheduled bank is used, the application will be deemed invalid.
At the end of the application form, the investors will have to put their name in BLOCK letters and signature beside their name. The application has to be sent directly to the company’s corporate office.
The responsibility of the brokers is to facilitate the sale and purchase of shares and bonds in the capital market. They also help the investors by providing various information and guideline. Brokers can also act as an agent of the investors. So, the investors may take help from these brokers but they have to be registered with DSE or CSE.
Prospectus of Forth Coming IPO Forms under Fixed Price Methodand
To know more about DSE Initial Public Offerings, Please visit the official website of DSE and BSEC.