Book Building Method and Its Impact on Capital Market of Bangladesh

Abstract

Applied information is essential to the submission of hypothetical aptitude. Considering this,the topic of this report is selected to acquire real knowledge. I thankfully admit my indebtness concepts and data providers. I selected the topic“Book Building Method and its impact on capital market of Bangladesh”. In this report overviewes has been given shortly about capital market of Bangladesh and Securities & Exchange Commision (SEC) but emphasizes on the effectiveness, importance, merits, demerits of Book Building Method in BD. Here I have also included the Procedures which are followed for estimating price under book-building method & limitation of it. For analyzing this method I have evaluate some case studies on selected companies following different initiation methods. I have included some recommendations after analyzing this report. the main objective of my report is to find out the procedure of book building method of IPO and its effectiveness on the stock market. I have accumulated data and information for analyzing this report. Some information’s are from primary sources and some are from secondary sources. After collecting all the information, I made some of the following observations of my report;

 Book-building pricing method introduced into Bangladesh’s market has not reduced price manipulation as expected;  on the other hand, it has significantly increased possibly due to other external effects.  Increase the pricing capabilities of institutional investors to some extent.  SEC& the relevant authorities should come forward to implement the best IPO pricing method specially the BBM to gain the confidence of investors.