Initial Public Offering is the process of entering into the share market for different organizations. When investors want to invest their money in these new shares, they have to go through the IPO application process. By completing the process, they will be able to apply for the IPO. And if fortune is in their favour, then they will be benefited by winning the IPO as well.
If you are wondering what the process of IPO application in Bangladesh is? Then you have come to the right place. In this article, we will show what are the steps and process required to participate in the IPO application. Without much delay, let’s go to the details of what is the IPO Application Process in Bangladesh.
Having a BO Account
Having a BO account is a prerequisite for applying for any IPO. Without a BO account, an individual is not eligible to apply for the IPO. Because a BO account gives an individual the authority to start trading in the stock market. Therefore, having a BO account is the very first step of beginning the IPO application process.
If you have a BO account already, then it will be easier for you to get started with the IPO application process. If you do not have the account, then you will have to create the account first. You can find the details of how to create a BO account here.
Relevant Article: Why You Should Open a BO Account
Once you have the BO account, then you can move forward with the following steps.
Select the IPO
The next step of the IPO application process in Bangladesh is selecting the IPO you want to apply for. There can be many options available to you, but you must consider a few essential components before you apply for the IPO. It is always recommended to ensure the IPO application meets few basic criteria.
In the following, we will list down the major things to consider before applying for a new IPO.
- Market condition of the organization regarding how the overall market is doing.
- Performance of similar category company
- Years of operation
- Earning every fiscal year
- Reserve asset
- Compliance with governance
- Book building system
- Manager to the Issue
To have a detailed overview on what are the key elements to consider before applying for a new IPO, we recommend you to have a look into this analysis on things to consider before applying for a new IPO.
Once you are aware of the criteria to consider before applying for a new IPO and do thorough research on the available options, you will be able to make your mind whether to apply for that IPO or not.
Fill out the Application Form
In general, you can get started with the IPO application process by simply filling out an application form. You can contact your broker house to supply that application form. You will have to put in your necessary information in the application form. As you are registered against the account so the application information should match with the BO account.
One individual can have two types of accounts. Individual accounts and joint accounts are the available options for an individual. You can apply separately from these accounts. So when you are filling in the application form, ensure you are giving information correctly depending on the account you are using.
Along with the information, you might have to submit additional documents depending on the requirement of the different broker houses. This document has to be submitted as well with the application form and it will be sufficient to apply for the IPO.
Filling out the application form is getting easier than ever. With the help of your broker house, the entire application process for IPO is simpler than before. The broker house will supply you the form and you can just do your part and they will take care of the rest.
Many broker houses offer the feature of online applications for initial public offering. In that case, you will have to follow the process that is set forth by these broker houses. We from Royal Capital with our IPO service IPO Genie, offering our clients the exclusive feature of applying for IPO from online platforms.
All you have to do is put in the necessary information and get started with your application in just a few clicks. Once you are done with giving your information, we will take care of the rest and update you if there is any significant outcome. The entire process of applying for an IPO through us is very customer friendly. We take into consideration of the customers’ stake when we process the IPO application.
If your BO account has the necessary amount for the application then you are good to go. For example and IPO has a lot of 200 shares and it is BDT 5000. If your BO account has the necessary amount, you can apply using that account. If you do not get the IP then the amount will be refunded back to your account.
The refund process is quite simple and easy to use. It will automatically be refunded to your accounts after a couple of days of the result of the IPO. Once the amount is refunded to, you can use that again for applying for other companies.
To summarize, we can say that the process of applying for an IPO is very easy. It starts with selecting the IPO you want to apply for, filling in the application form with the necessary information, submitting the application, get the IPO application or else get a refund if the application is not successful. By following the process mentioned above, the IPO application process will be completed.
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