How to Apply for an IPO in Bangladesh (and What Returns to Realistically Expect)
Applying for an IPO is often the first thing new investors in Bangladesh want to do. The idea is simple: buy shares at the offer price before a company lists, and hope they trade higher once it does. The reality is more mixed. This guide explains how IPOs work under the current BSEC rules, how to apply through the Amar Biniyog app, and what returns you can honestly expect.
If you are completely new to the market, start with our guide to the basics of the Bangladesh stock market.
What is an IPO?
An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time and then lists on the Dhaka Stock Exchange (DSE) and/or the Chittagong Stock Exchange (CSE). The company raises money for its business, and investors get a chance to own part of it.
In Bangladesh, IPOs are now governed by the BSEC (Public Offer of Equity Securities) Rules, 2025, which were gazetted and took effect on 30 December 2025. They replaced the earlier public issue rules and brought back the lottery for general investors.
Fixed-price vs book-building: two ways to set the price
Every IPO uses one of two pricing methods:
- Fixed-price method: the company and its issue manager set the offer price in advance, with a justification approved by BSEC. Shares can be offered at par, at a premium or at a discount.
- Book-building method: an indicative price is set after a roadshow. Eligible investors then bid within a band of 25% around that price, and the bidding sets a “cut-off price”. Everyone, including general investors, buys at that same cut-off price.
Eligible investors (EIs) are institutions such as mutual funds, banks, insurers, provident and pension funds, and other approved entities registered on the stock exchange’s Electronic Subscription System. They do the price discovery in book-building. In book-building IPOs their allotted shares are also locked in for a period after listing (50% for 90 days, 25% for 120 days and 25% for 180 days), so they cannot all sell on day one.
Who gets how many shares: the quotas
The 2025 rules divide each public offer into fixed quotas. Here is how it works:
| Category | Fixed-price | Book-building |
|---|---|---|
| General investors | 60% | 35% |
| Non-resident Bangladeshis (NRBs) | 10% | 7% |
| Eligible investors (EIs) | 10% | 40% |
| Mutual funds | 10% | 10% |
| High net-worth individuals | 5% | 5% |
| Permanent employees of the issuer | 5% | 3% |
If the mutual fund, employee, high net-worth or NRB portions are not fully taken up, the unsubscribed shares go to general investors.
Who can apply as a general investor?
To apply, you need an active BO (Beneficiary Owner) account with a broker and enough money in it to cover the application before the subscription closes. If you do not have one yet, you can open a BO account online with Mika Securities.
About the minimum secondary-market investment: under the previous system, general investors had to hold at least Tk 50,000 in listed securities (at market value, on a set cut-off date) to apply for an IPO. A government taskforce recommended lifting that condition in 2025. The new 2025 rules leave the detailed application procedure for general investors to each IPO’s BSEC consent letter. So the safest approach is to check the conditions in the specific IPO notice before you apply. Our team and the Amar Biniyog app will show you whether you qualify for each open IPO.
NRBs apply under their own quota, normally through a foreign currency account linked to their BO account.
The subscription period and how your money is held
After BSEC approves an IPO, the company publishes its prospectus and an abridged version. Under the 2025 rules, subscription by general investors cannot open until 10 working days after the abridged prospectus is published. In fixed-price IPOs, general investors subscribe for 5 working days, at the same time as eligible investors. The exact opening and closing dates are in each IPO’s notice.
When you apply, the application amount is taken from the balance in your BO account and held for the IPO. If you do not win shares, the money comes back to your account. Applications are processed through the stock exchange’s electronic system, so you do not deal with paper forms or bank drafts the way investors did years ago.
How allotment works: the lottery is back
From 2020 until the end of 2025, IPO shares for general investors were allotted pro-rata, which meant people with more money got more shares. Many small investors felt this was unfair. The 2025 rules changed that.
- General investors and NRBs: if the IPO is oversubscribed, shares are allotted by lottery, under both fixed-price and book-building methods.
- Eligible investors, mutual funds, employees and high net-worth individuals: shares are allotted pro-rata.
In practice, popular IPOs in Bangladesh are often heavily oversubscribed, so there is no guarantee you will win. Treat every application as a chance, not a sure thing.
Refunds, share credit and the first trading day
- Refunds: if you are not allotted shares, your full application amount is returned to your BO account balance.
- Share credit: if you win, the shares are credited to your BO account through CDBL in electronic form before trading starts.
- Trading start: the stock exchange announces the first trading date for each new listing. From that day, you can hold or sell like any other share.
- Debut-day price limits: BSEC has changed the price limits for newly listed shares several times over the years, from wider bands on the first two days to the normal circuit breaker from day one. Check the current limit before trading on listing day.
IPO application charge
Mika Securities charges a small flat fee of Tk 10 per IPO application, whether or not you win shares. You will see the charge in the app before you confirm.
How to apply for an IPO in the Amar Biniyog app
- Open a BO account with Mika Securities online if you do not have one. Mika has been a DSE member since 2005 (TREC No. 215) and is a CDBL depository participant.
- Add money to your account by bank transfer or bKash. Make sure the balance covers the application amount before the subscription closes.
- Go to the IPO section in the Amar Biniyog app to see open IPOs, the offer price, the application amount and the closing date.
- Read the prospectus (more on this below) before deciding.
- Apply in a few taps and confirm. The amount is held from your balance.
- Check the result after the lottery. Winning shares appear in your portfolio; otherwise the money is returned to your balance.
Prefer to talk to someone? Our team at any of our 26 offices nationwide can help you apply during the subscription period.
What returns should you realistically expect?
Many Bangladeshi IPOs have historically traded above their offer price soon after listing. That is why IPOs are popular, and why they are often oversubscribed.
But that is only part of the story. Some IPOs fall below the offer price. Many that start strong fade over the following months as the early excitement wears off and the share price moves back toward what the business is actually worth. A good first week does not make a good long-term investment.
So the honest answer is: there is no guaranteed IPO return. Judge each company on its fundamentals, not on what past IPOs did.
Key sections of the prospectus to check
- Use of IPO proceeds: is the money going into growth, or mainly to repay loans?
- Financial statements: look at revenue, profit and operating cash flow over several years, not just the latest one.
- Valuation and offer price justification: how did they arrive at the price, and does it look fair compared with similar listed companies?
- Risk factors: the company must list its key risks. Read them.
- Shareholding and lock-in: who owns the company, and when can large holders sell?
- Credit rating and auditor’s report: note any qualifications or concerns.
- Related-party transactions: large dealings with sponsors’ other businesses deserve a closer look.
Frequently asked questions
1. Do I need a BO account to apply for an IPO?
Yes. IPO shares are issued only in electronic form through CDBL, so you need an active BO account with enough balance before the subscription closes.
2. Is IPO allotment by lottery or pro-rata now?
Under the BSEC rules effective 30 December 2025, general investors and NRBs are allotted by lottery when an IPO is oversubscribed. Institutional and other categories are allotted pro-rata.
3. Do I need to hold other shares before applying?
Under the previous system, general investors needed at least Tk 50,000 invested in listed securities. Under the new rules, the application conditions are set in each IPO’s consent letter, so check the notice for the IPO you want. The app shows whether you are eligible.
4. What happens to my money if I do not win?
Your full application amount is returned to your BO account. Only the small application charge is kept.
5. Should I sell my IPO shares on the first day?
There is no single right answer. Some investors take an early gain; others hold good businesses for the long term. Decide based on the company’s fundamentals and your own goals, not on market excitement.
Ready to start? Open your BO account online, fund it by bank transfer or bKash, and apply for your next IPO in the Amar Biniyog app. Mika Securities has served more than 100,000 investors since 2005.
This article is for general education only and is not investment advice. Investment carries risk; past performance does not guarantee future returns. Figures cited are from public sources as of October 2026.