Underwriting

Underwriting is one of the important functions of a merchant bank by which it can increase the supply of stock/shares and debentures in the market. It is an arrangement whereby the underwriter undertakes to subscribe the un-subscribed portion of shares/debentures offered by any public limited company. This encourages the prospective issuers to offer shares/debentures to the public for subscription to raise fund from the public for implementation and expansion of their industrial undertakings.

 

In merchant banking, underwriting is the practice by which investment bankers represent corporate and government entities in the initial public offering of their securities. The merchant bankers cover the risk of selling the securities to the public. What's the risk? Bankers guarantee to the issuers that the securities will be sold for no less than a minimum price set by the merchant banker. If the merchant bankers can’t find enough purchasers to buy the securities at the minimum price, the merchant bankers must hold those securities on their books, or worse, sell them below the minimum price and suffer a loss. Conversely, if there is strong demand for the securities, the merchant bankers make a profit by selling the securities above the minimum price they promised the issuer. 

 

BMSL Investment Limited Worked as Underwriter in the IPO / Rights Issue of the following companies. Total Underwriting value BDT 5865 million (currently 482.68 million). 

1 Fu-Wang Ceramics Limited - IPO

2 Fu-Wang Foods Limited - IPO

3 ACI Limited (Rights Issue) - Rights Issue

4 Gachihata Aquaculture Farms Limited - IPO

5 Prime Insurance Company Limited - IPO

6 Islami Bank Bangladesh Limited (Rights offer), 2000 - Rights Issue

7 Bangladesh–Thai Aluminum Limited (Rights offer) - Rights Issue

8 Meghna PET Industries Limited - IPO

9 Pioneer Insurance Company Limited - IPO

10 Keya Cosmetics Limited - IPO

11 Al-Amin Chemical Industries Limited - IPO

12 Padma Cement Limited - IPO

13 MIDAS Financing Limited - IPO

14 Fahad Industries Limited - IPO

15 BDCOM Online Limited - IPO

16 Dhaka Bank Limited (Right Issue) - Rights Issue

17 Southeast Bank Limited (Right Issue) - Rights Issue

18 Keya Detergent Limited - IPO

19 Islami Bank Bangladesh Limited, 2003 (Right Issue) - Rights Issue

20 Al-Arafah Islami Bank Limited (Right Issue) - Rights Issue

21 Standard Bank Limited - IPO

22 JAGO Corporation Limited - IPO

23 First Lease International Limited - IPO

24 Bank Asia Limited - IPO

25 Mercantile Bank Limited - IPO

26 EXIM Bank Limited - IPO

27 Fareast Islami Life Insurance Co. Ltd (IPO) - IPO

28 Meghna Life Insurance Company Limited (IPO) - IPO

29 Sonar Bangla Insurance Company Limited (IPO) - IPO

30 Premier Leasing Limited (IPO) - IPO

31 Aftab Automobiles Limited (Rights Issue) - Rights Issue

32 Jamuna Bank Limited (IPO) - IPO

33 Central Insurance Company Ltd. (Rights Issue-2006) - Rights Issue

34 Phoenix Leasing Company Limited (IPO) - IPO

35 Uttara Finance and Investment Limited (Rights Issue) - Rights Issue

36 Shahjalal Islami Bank Limited (IPO) - IPO

37 Sumit Power Limited (Right Issue) - Rights Issue

38 BRAC Bank Limited (Right Issue) - Rights Issue

39 Social Investment Bank Limited (Right Issue) - Rights Issue

40 Central Insurance Company Ltd. (Rights Issue-2008) - Rights Issue

41 Dhaka Insurance Company Limited (IPO) - IPO

42 S Alam Cold Rolled Steels Mills Limited (Right Issue) - Rights Issue

43 RAK Ceramic (Bangladesh) Limited (IPO) - IPO

44 Karnaphuli Insurance Co. Ltd. (Right Issue) - Rights Issue

45 ACI 20% Convertible Zero Coupon Bond - IPO

46 Janata Bank Limited (Forthcoming IPO) - IPO

47 United Airways (BD) Limited ( IPO) - IPO

48 Sunflower Life Insurance Co. Ltd. ( Forthcoming IPO) - IPO

49 Malek Spinning Mills Ltd. ( Forthcoming IPO) - IPO

50 Subordinated Convertible Bond (Brac Bank) ( Forthcoming IPO) - IPO

51 Alliance Holdings Limited (IPO) - IPO

52 M.I Cement Factory Limited (IPO) - IPO

53 Modern Poly Industries Limited - IPO

54 Prime Bank Ltd. (Right Issue) - Rights Issue

55 Phoenix Finance & Investments Ltd. (Right Issue) - Rights Issue

56 Janata Insurance Company Limited (Right Issue) - Rights Issue

57 LankaBangla Securities Ltd. (Forthcoming IPO) - IPO

58 Bangladesh Welding Electrodes Ltd. (Right Issue) - Rights Issue

59 Rangpur Dairy & Food Products Ltd. (Forthcoming IPO) - IPO

60 Barakatullah Electro Dynamics Limited - IPO

61 MJL Bangladesh Limited - IPO

62 Union Insurance Company Limited - IPO

63 STS Holding Company Limited - IPO

64 Pioneer Insurance Company Limited - Rights Issue

65 Navana Real Estate Limited - IPO

66 Bangladesh Shipping Corporation (RPO) - RPO

67 Keya Cotton Mills Limited - IPO

68 Envoy Textiles Limited - IPO

69 PHP Float Glass Industries Limited - IPO

70 Sinobangla Industries Ltd. - IPO

71 Energyprima Limited (IPO) IPO

72 The Dacca Dyeing & Manufacturing Co. Ltd. (Right) Rights Issue

73 Aamra Technologies Limited (IPO) IPO

74 R. N. Spinning Mills Limited (Rights Issue) - Rights Issue

75 Otobi Limited. - IPO

76 Summit Shipping Limited - IPO

77 People’s Leasing and Financial Services Ltd. (Rights Issue) - Rights Issue

78 Central Insurance Co. Ltd. (2011) (Rights Issue) - Rights Issue

79 Phoenix Insurance Company Ltd. (Rights Issue) - Rights Issue

80 FAS Finance & Investment Ltd. (Rights Issue) - Rights Issue

81 National Housing Finance & Investment Ltd. (Rights Issue) - Rights Issue

82 Phoenix Finance & Investment Ltd. (Rights Issue) - Rights Issue

83 PLFSL (Rights Issue) - Rights Issue

84 FAS Finance & Investments Ltd. (Rights Issue) - Rights Issue

85 Trust Bank Limited (Rights Issue) - Rights Issue

86 LSI Industries Ltd. - IPO

87 Dhaka Regency Hotel & Resorts Limited - IPO

88 Argon Denims Ltd. - IPO

89 Sunlife Insurance Co. Ltd. - IPO

90 Orion Pharma Ltd. - IPO

91 Golden Harvest Agro Industries Ltd. - IPO

92 Summit Purbachal Power Co. Ltd. - IPO

93 Keya Spinning Mills Ltd. - IPO

94 Paramount Textile Limited - IPO

95 Ananda Shipyard & Slipways Ltd. - IPO

96 Appollo Ispat Complex Ltd. - IPO

97 Matin Spinning Mills Ltd. - IPO

98 MP Spinning Mills Ltd. - IPO

99 Generation Next Fashions Limited - IPO

100 Western Marine Shipyard Limited - IPO

101 Delta Spinners Limited - Rights Issue

102 Hemple Rhee Manufacturing Co. (BD) Limited - IPO

103 Khan Brothers PP Woven Bag Industries Ltd. - IPO

104 Royal Denim Limited - IPO

105 Bangladesh Industrial Finance Company Limited (BIFC) - Rights Issue

106 IFIC Bank Ltd. - Rights Issue

107 Brac Bank Ltd. - Rights Issue

108 Karmim Spinning Mills Limited - IPO

109 Shasha Denims Limited - IPO

110 IDLC Investment Limited - Rights Issue

111 Metrocem Cement Limited - IPO

112 Bashundhara Paper Mills Ltd. - IPO

113 Yeakin polymer Limited - IPO

114 Delta Hospital Limited - IPO