Chittagong firms mull fund from stock market

Chittagong-based entrepreneurs mull raising capital from stock market, as they feel the capital from the public will be cost effective for their businesses.
Raising fund from the public will also enrich the stock market, they said.
“The entrepreneurs take loans at high interest from banks or other financiers to set up industrial units. And after taking the loans, they always remain in tension to repay the loan in time before going into production,” Abdus Salam, senior vice president of Chittagong Chamber of Commerce and Industry, told The Daily Star yesterday.
The stock market is an alternative to raise required fund that is more cost effective for entrepreneurs, he said.
“I am an entrepreneur. If I can raise funds from the stock market without any interest, why should I go for bank loans with high interest rate?” he said.
“We will also take initiative to encourage other entrepreneurs to list their entities with the stock exchanges,” he said.
However rules and regulations should be industry-friendly so the entrepreneurs can easily raise capital from the stock market, said the chamber leader, who is also an industrialist based in Chittagong.
The stock market regulator on Tuesday urged the Chittagong-based entrepreneurs to list their companies.
While inaugurating the Third CSE Capital Market Fair at the Chittagong Club auditorium on Tuesday, Ziaul Haque Khondker, chairman of Securities and Exchange Commission (SEC), said: “Here in Chittagong, many big entrepreneurs are running their businesses. They can raise funds from the market or offload a portion of their shares in the stock exchange.”
Although some big companies from the region such as S Alam Group and BSRM are listed, there are many others yet to enter the capital market.
PHP, KDS, Mostafa Group and BSA are some of the Chittagong giants that are not listed, although they often borrow from the banking sector or other financiers.
Mohammed Akther Parvez, director of PHP Group, said they are already taking preparation to list some of their companies with the stock exchanges.
“PHP Float Glass Industries will be listed first,” he said, adding that they are also working to bring products such as mutual fund to the stock market.
Saiful Alam Masud, chairman of S Alam Group, said the SEC call would encourage many Chittagong-based entrepreneurs to raise fund from the stock market. “They (entrepreneurs) will start thinking about the issue now.”
“Listing of big industries will strengthen the market further. Also, both the entrepreneurs and investors will be benefited,” he said.
Meanwhile, the two-day capital market fair, organsied by Chittagong Stock Exchange, ended yesterday with huge response.
Along with the existing investors, many prospective investors have thronged the fair to know how to invest in the market.
A total of 30 institutions, including CSE brokerage firms, merchant banks, leasing companies, banks and other CSE listed companies, participated in the fair with their products and services.
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