Dhaka Stock Exchange (DSE) will not allow any private company to join bourses under direct listing system.

The DSE took the decision at a meeting yesterday.

No companies except the government-owned ones will be listed directly on the stock

exchanges, according to a DSE press statement, which said the bourse took the decision for the interest of the market.

Meanwhile, Navana CNG Limited, a private company, yesterday completed sale of half of its shares, or 1.81 crore ordinary shares ofTk 10 each, under direct listing.

Navana CNG received a bonanza of around Tk 360 crore against onlyTk 18 crore shares.

However the DSE decision will have to be accepted and permitted by the Securities and Exchange Commission (SEC).

Market analysts came down heavily on the DSE for taking such a move to bar the private sector companies from direct listing.

They said the decision will hinder the supply of new issues to the market.

"If any company makes a huge business through the existing direct listing method and if it seems that the rules are being abused, the rules should be amended," said Yawer Sayeed, managing director of AIMS of Bangladesh.

"But, no company should be barred from direct listing," he said.

A special committee formed earlier by the SEC had recommended for some amendments to the existing direct fisting rules.

"But neither the SEC nor the DSE took initiatives to bring changes in the direct listing method based on the recommendation," said Sayeed, who was a member of the committee.

ICB Securities Trading Company and Sharp Securities, the selling agents for Navana CNG, said the sister concern of Navana Group receivedTk 200 per share on an average.

Offloading of the CNG (compressed natural gas) conversion and re-fuelling company's shares started on the two bourses on August 30 under direct fisting method, an alternative way of enlisting profitable companies that do not prefer IPO system.

"We have completed the sale of Navana CNG shares today [yesterday),” said Mozammel Haque, director of Sharp Securities, which sold 1.21 crore shares.

“It's the record lowest time for completing sale of shares under direct listing rules. No company was able to finish offloading shares within just seven trading days,” he said.

The rest 60 lakh shares were sold by ICB Securities Trading Company.

“From our side, we have completed the sale couple of days ago,” said Kazi Sanaul Hoq, chief executive officer of ICB Securities.

On the first day, price of Navana CNG shares rose as high asTk270 before closing at Tk 190.48.

However, the average prices of Navana shares were in between Tk 200 and Tk 205 ih the last six days.

The bonanza could encourage other profitable companies to get listed with the stock exchanges, market analysts said.

They said the profitable companies that do not prefer existing IPO (initial public offering) method should take the direct fisting facilities to go public.

The entrepreneurs will get the best value of their shares, as price of a security is determined by prospective investors directly in the secondary market under the direct listing method, the analysts said.

Before Navana CNG, five government entities — Desco, Power Grid, Jamuna Oil, Meghna Petroleum and Titas Gas -- and two private organisations -- Shinepukur Ceramics and ACI Formulations -- were listed directly. sarwar@thedailystar.net