The Retail Investor’s Guide to IPO - Rules and Application Process 2026

If you are a retail investor looking to invest in Initial Public Offerings (IPOs) in Bangladesh, the landscape has just been updated. The Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025 introduces clear guidelines on how you can participate, how shares are allocated, and what rights you have.
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Here is everything you need to know about applying for an IPO under the new rules.

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1. Am I Eligible? (Know Your Category)

• General Investor (GI): This includes any standard retail investor resident in Bangladesh.
• Non-Resident Bangladeshi (NRB): If you are a Bangladeshi citizen living abroad (or have dual citizenship/valid foreign passport), you have a specific quota reserved just for you.

You must have a BO Account to apply for any IPOs. Open one today. 

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2. How Many Shares Are Reserved for Me?

The number of shares available to you depends on the method the company uses to go public.

Good News: If other categories (like Mutual Funds or Employees) do not subscribe to their full portion, those unsold shares are transferred to the General Investor portion, increasing your chances.

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3. How is the Price Determined?
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• Fixed Price Method: The company sets one price (e.g., 10 Taka or a higher premium price). You apply at this specific price.
• Book Building Method: "Eligible Investors - EIs" (like Stock Dealers, Asset Manager and Merchant Bankers) bid to set the price. You do not participate in the bidding. Once they determine the "Cut-off Price," you are offered shares at that price. For example: If the EIs determine that the price per share is Tk. 55, then all General Investors and NRBs will also apply for Tk. 55 per share.

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4. The Application Process

When a company gets approval to go public, here is the timeline you need to watch:

• Prospectus Publication: The company publishes a detailed document (prospectus) about their business.​
• Subscription Window: The subscription period usually opens 5 working days for General Investors. This typically starts shortly after the prospectus is published (specifically, 10 working days after the abridged version is published).
  
• Making the Payment: You must deposit the full subscription amount in advance. Simply log into your Midway Portal and apply for IPO.

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5. How Are Shares Allotted? (The Lottery System)

This is a critical update in the 2025 rules. While big institutional investors might get shares on a pro-rata basis, retail investors are subject to a Lottery.

• Rule: In case of over-subscription (which is common), equity securities for General Investors and NRBs shall be allotted on a lottery basis.
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• Refunds: If you are not lucky in the lottery, your subscription money will be refunded into your BO Account.

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6. Can I Sell My Shares Immediately?
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• General Investors: Generally, there is no lock-in period mentioned for standard General Investors in the new rules. You are typically free to trade once the shares are listed.
• NRBs: Be careful here. The rules state that shares held by a Non-Resident (NR) are subject to a 1 (one) year lock-in. You may need to hold your shares for a year before selling.

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7. Summary Checklist for Success

Simply follow our Facebook Page, our dedicate IPO page and your Midway Portal for latest IPO news, subscription date, etc. . 

• Check the Method: Is it Fixed Price or Book Building?
• Check the Dates: You usually have a 5-day window to apply.
• Check Your Category: Apply as NRB if you qualify to access the reserved 7-10% quota.
• Deposit Funds: Ensure your BO account has sufficient funds for the full application amount.

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Open a BO Account today and get ready for IPOs -- 100% online.