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          The Bangladesh Bank (BB) has further extended the time for floatation of initial public offerings (IPOs) by the non-banking financial institutions (NBFIs) until June 30 next.
At least 15 NBFIs have to issue IPOs within the stipulated time in line with the latest directives of the central bank, official sources said.
The BB has already issued a circular in this connection and asked the chief executives of all the NBFIs to follow the instruction for floatation of their IPOs.
Earlier, the chief executives of the NBFIs urged the BB to extend the December 31, 2005 deadline for floating IPOs to raise funds through the stock market.
Under the latest directives, the central bank allowed the NBFIs to float the IPOs by June 30.
"We have extended the deadline of IPO floatation by the NBFIs," a senior BB official told the FE. He added that the central bank extended the deadline following the recommendations from the market operators.
Currently, 27 NBFIs out of 28 are functioning in the country, of which nine have already floated IPOs, while some are in the process of floating the same.
Of the remaining three, one is solely government-owned and the other two are joint ventures between Saudi Arabia and Bangladesh, and the UAE and Bangladesh governments.
Fifteen NBFIs, which will float IPOs by the stipulated time, include Bangladesh Finance and Investment Ltd., Bangladesh Industrial Finance Company Ltd., Bay Leasing and Investment Ltd., Delta BRAC Housing Finance Corporation Ltd., Fareast Finance and Investment Ltd., Fidelity Assets and Securities Company Ltd., and GSP Finance Company (Bangladesh) Ltd.
Besides, Industrial and Infrastructure Development Finance Company Ltd., Industrial Promotion and Development Company Bangladesh Ltd., International Leasing and Financial Service Ltd., National Housing Finance and Investment Ltd., Oman Bangladesh Leasing and Finance Ltd., Phoenix Leasing Company Ltd., Union Capital Ltd and LankaBangla Finance Ltd (Vanik Bangladesh Ltd.) are also in the queue to launch their IPOs.
The central bank has already issued 28 licences to the NBFIs for operating their business across the country while one NBFI is yet to start functioning.
"Most of the NBFIs have already started the process to float IPOs in line with the central bank directives," a senior official of a NBFI told the FE Saturday, adding that at least three NBFIs will float their IPOs shortly after completion of all formalities with the Securities and Exchange Commission (SEC).
However, the official expressed concerned over floatation of the IPOs by the NBFIs by the deadline, set by the central bank.
"We want to float the IPO within the timeframe, but it will require fulfillment of some conditions of the SEC. We have also to consider a favourable market situation to get response from investors," he added.
Earlier, the central bank made floatation of IPO mandatory for all NBFIs aiming to energise the country's capital market.
The BB also set some specific conditions to be followed by the NBFIs in the flotation of IPOs.
As per the conditions, the leasing companies have to float IPOs, maintaining the existing ratio of sponsors and public shares that have already been specified in their respective memorandum of articles.
But the companies, having paid-up capital worth more than Tk 125 million, may be given permission to float a minimum of 50 per cent of their total required paid-up capital amounting to Tk 250 million, the central bank said.
On the other hand, companies, which do not have specified sponsors-public shares ratio in their memorandum of articles, must raise at least Tk 125 million from the capital market through issuing IPOs.
On June 2003, the BB raised the minimum ceiling of paid-up capital of a NBFI at Tk 250 million from the earlier amount of Tk 100 million aiming to make the operation of leasing companies sound.