Government intends to sell a 5% stake in its foreign business partnerships, with both the government and partners participating in the stock sale.
The Bangladesh government has announced a series of moves aimed at improving governance, accountability, and transparency in the country's capital market. The latest update on the government's plan to offload shares of multinational companies (MNCs) reveals that the Bangladesh Securities and Exchange Commission (BSEC) has identified 15 state-run and multinational companies for potential listing on the stock exchange.
The identified companies include multinational firms such as Unilever Bangladesh, Novartis Bangladesh, Nestlé Bangladesh, and Syngenta Bangladesh, among others. The listing will be done via direct listing since these companies hold substantial reserves and do not require fresh capital. Stakeholders have been directed to take immediate steps to initiate the listing process, following the plan announced in early August 2025.
In a separate development, the Chittagong Stock Exchange (CSE) is planning to list on the Dhaka Stock Exchange (DSE) as part of demutualisation efforts and to attract foreign investors. This involves transferring shares rather than raising new capital, with plans to offer shares to both institutional and general investors, including foreign institutions.
The government's decision to offload at least 5% of its own shares and 5% of foreign partners' shares in all such ventures operating in the country was first announced in a high-level meeting chaired by Chief Adviser Muhammad Yunus. The meeting, which took place on 31 July, was also attended by Industries Secretary Obaidur Rahman, Niranjan Chandra Debnath, managing director of ICB, Majeda Khatun, CEO of ICB Capital Management, Md Fazlur Rahman, chairman of BCIC, and ASM Shafiul Alam Talukder, director general of Bangladesh Ship Recycling Board.
The meeting also discussed the government's aim to bring profitable state-owned enterprises (SOEs) and MNCs with government stakes to the stock market. The BCIC owns the highest 45.32% stake in Synovia Pharmaceuticals, 40% stake in Novartis Bangladesh, 40% stake in Bayer CorpScience BD, and 40% stake in Syngenta Bangladesh. The industries ministry owns a 12.92% stake in Nuvista Pharmaceuticals, and the government owns a 39.6% stake in Unilever Bangladesh, with two directors nominated to the board by the Ministry of Industries.
Reactions to the proposal to offload 5% of foreign ownership shares in the capital market were mixed. Some cash-rich MNCs questioned the need to raise additional funds at this time and asked why they should list on the capital market. However, some companies were willing to comply, while others expressed concerns.
In 2021, Beximco Pharmaceuticals acquired the majority stake of Sanofi Bangladesh, which was renamed Synovia Pharma PLC. The Karnaphuli Fertiliser Company (Kafco) is a 100% export-oriented international joint venture company, with the BCIC owning 43.15% stake and the industries ministry owning 12.92%. Kafco produces high-grade granular Urea and anhydrous Ammonia.
ICB Capital Management Limited has initiated an effort to list government-owned companies on the capital market, as part of implementing the Chief Adviser's directives. The meeting with a dozen firms included Unilever Bangladesh, Nuvista Pharma, Sanofi Bangladesh (now Synovia Pharma PLC), IPDC Finance, Reckitt Benckiser (Bangladesh), Bengal Glass Works, Mirpur Ceramic Works, Himadri Ltd, and Karnaphuli Fertiliser Company.
The government's move to offload shares in MNCs and list state-owned enterprises aims to restore investor confidence and allow the government to determine the proper value of its holdings. It is part of a broader effort to revitalise and modernise the market, as directed by the government in a separate high-level meeting chaired by Chief Adviser Muhammad Yunus.
[1] Source: The Daily Star, August 5, 2025 [2] Source: The Financial Express, August 10, 2025 [3] Source: The Financial Express, August 15, 2025 [4] Source: The Daily Star, August 20, 2025
- The Bangladesh Securities and Exchange Commission (BSEC) has identified several multinational companies, including Unilever Bangladesh, Novartis Bangladesh, Nestlé Bangladesh, and Syngenta Bangladesh, for potential listing on the stock exchange, indicating a stronger emphasis on finance and business within the country's capital market.
- In an effort to restore investor confidence and determine the proper value of its holdings, the government plans to offload shares in multinational companies like Unilever Bangladesh, Novartis Bangladesh, Nestlé Bangladesh, and Syngenta Bangladesh, as well as list state-owned enterprises, thereby fostering growth and development in the finance and business sectors.
