Written by The Banking Post
The government has issued fresh instructions to offload shares of profitable state-owned enterprises (SoEs) and multinational companies (MNCs) where it holds equity, in a bid to inject life into the sluggish stock market.
Despite repeated decisions in the past, progress on such offloading has stalled for years due to procedural delays and bureaucratic bottlenecks. Officials admit that reminders from high-ups went unheeded under the previous regime, leaving the process in limbo.
This time, the finance ministry has directed four ministries — Power, Energy and Mineral Resources, Commerce, and Industries — along with the Power Division to move quickly. A high-level meeting, chaired by Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury on July 31, also tasked the Financial Institutions Division (FID), Bangladesh Securities and Exchange Commission (BSEC), and the state-run Investment Corporation of Bangladesh (ICB) with expediting the listing process.
The companies earmarked for offloading include Unilever Bangladesh, Karnaphuli Fertiliser Company, Synovia Pharma, Novartis, Syngenta Bangladesh, Nestlé Bangladesh PLC, North-West Power Generation Company, Pashchimanchal Gas Company, Sylhet Gas Fields, and Karnaphuli Gas Distribution.
According to Bangladesh Chemical Industries Corporation (BCIC), it owns the highest 45.32% stake in Synovia Pharmaceuticals (formerly Sanofi Bangladesh), 40% in Novartis Bangladesh, 40% in Bayer CropScience BD, and 40% in Syngenta Bangladesh. The government also holds a 39.6% stake in Unilever Bangladesh.
At the meeting, officials stressed that listing SoEs and MNCs would not only increase transparency about their true financial health but also benefit investors through higher dividends and boost government revenues. “Listing will strengthen the market and bring positive results for both the companies and the economy,” one senior FID official said.
The interim government has already decided to reduce its shareholding by at least 5% in the targeted companies, alongside a similar portion of foreign-owned equity, to ensure broader participation in the capital market.
BSEC officials pointed out that many countries, including India, Pakistan and Sri Lanka, legally require multinational firms to list on stock exchanges. Bangladesh, they argued, must follow suit.
However, the legacy of missed deadlines remains. An ICB official acknowledged that the previous government had promised offloading “several times” but failed to deliver. “The procedural complexities and lack of initiative stalled the process,” he said.
Currently, more than a dozen SoEs remain under consideration for listing. Whether the interim government’s renewed push can finally overcome the bottlenecks will be closely watched by investors eager for fresh opportunities in a market struggling to regain momentum.
