No of BO accounts rises by 77,809 in Aug-Sept
The number of beneficiary owners’ accounts increased by 77,809 in last two months (August-September) this year amid vibrancy at the primary (initial public offering) market.
As of September 28, the number of BO accounts stood at 26,94,754 while the figure was 26,16,945 as of July 31 this year.
Investors usually open new BO accounts or revive their suspended ones when they find the IPO market vibrant and the secondary market bullish, market operators said.
They said the surge in the number of IPOs in the current year drew investors to the market.
So far this year, 14 companies including two mutual funds raised Tk 681 crore through issuing IPOs while only seven companies raised Tk 219.25 crore from the capital market in 2017, hitting a decade low.
An abnormal surge in the share prices of newly listed companies in the first few days after their debut on the stock exchanges lured people to open BO accounts, market operators said.
The IPOs of ML Dyeing, VFS Thread Dyeing and Advent Pharmaceuticals were recently oversubscribed by more than 30 times.
Opening a BO account with the Central Depository Bangladesh Limited through a depository participant, which is usually a stockbroker or a merchant bank, is a must for trading shares at the Dhaka Stock Exchange and the Chittagong Stock Exchange.
Of the active 26,94,754 BO accounts, 19,67,373 are owned by male investors and 7,15,275 by female investors. The figures were 19,11,700 and 6,93,357 respectively on July 31, 2018.
Individual investors operate 16,99,208 BO accounts, investors jointly operate 9,83,440 BO accounts and 12,106 accounts are operated by different companies including institutional investors, the CDBL data showed.
Of the accounts (excluding the company-owned BO accounts), 25,26,364 BO accounts are owned by Bangladeshi investors and 1,56,284 accounts owned by non-resident Bangladeshi investors, the data showed.
The IPO market was dull in the year of 2017 but this year the primary market was bullish.
Of the newly listed companies in 2018, the share prices of Advent Pharmaceuticals and Queen South Textiles Mills soared by 384 per cent and 274 per cent respectively on their debut.
Six companies — Silva Pharmaceuticals, Indo Bangla Pharmaceuticals, Kattali Textiles, Runner Automobiles, Genex Infosys, SS Steel — are waiting to be listed with the market soon.
Investors expect more companies will get the Bangladesh Securities and Exchange Commission’s consent in this year, market operators said.
The secondary market was mostly volatile in this year because of several issues including political uncertainties ahead of the national election due by January next year.
Currently, an investor has to pay Tk 450 per annum to keep his/her BO account active.
The number of BO accounts reached its peak at around 34 lakh in the fiscal year 2010-11, the year of market bubble-burst, as people, lured by the booming share prices, then had rushed to open accounts with different brokerage houses.
Source: http://www.newagebd.net