The Bangladesh Securities and Exchange Commission published draft amendments to its 2025 public offer rules on 18 October; they are not yet final. The proposal raises the cap on using IPO or rights-offer proceeds to repay loans from 30 to 50 per cent — so a company raising Tk 100 crore could repay up to Tk 50 crore of eligible loans.

Defaulted or rescheduled loans could not be repaid this way. IPO money would sit in a separate escrow account and be spent only as the prospectus states, and companies must justify share prices using at least four valuation methods.

Exchanges would have 20 days to review applications. Public comments are invited for two weeks, and the changes take effect only if formally approved.

Source: The Business Standard and other published reports — rewritten in our own words.