DSE IPO Allotment Calculator

The New IPO Allotment System in Bangladesh

Gone are the days of the "Lottery System" for IPOs in the Bangladesh capital market. Starting in 2021, the Bangladesh Securities and Exchange Commission (BSEC) introduced a Pro-Rata (Proportionate) Allotment system. This means that every eligible applicant now receives some shares, rather than it being a game of chance.

How Pro-Rata Allotment is Calculated

The number of shares you receive is directly proportional to your application amount relative to the total subscription. The formula used is:

If an IPO is oversubscribed by 50 times (50x), and you applied for Tk 10,000, you will roughly receive Tk 200 worth of shares (10,000 / 50). The remaining Tk 9,800 will be refunded to your BO account.

Minimum Investment Requirement

To be eligible to apply for an IPO, a General Public (GP) investor must maintain a minimum investment in listed securities (A, B, G, N categories) at market value. As of current regulations, this minimum requirement is Tk 50,000.

Note: For Non-Resident Bangladeshis (NRBs), the minimum investment requirement is usually Tk 100,000.

Strategies for Higher Allotment

• Increase Application Amount: Since allotment is proportionate, applying with a larger sum (e.g., Tk 50,000 instead of Tk 10,000) will result in a higher number of shares.
• Multiple Accounts: You can apply from your own account and your family members' accounts (spouse/children), provided each account meets the minimum secondary market investment criteria.