If you’ve ever talked to a merchant bank in Dhaka, you’ve probably heard terms like IPO, bonds, sukuk, PMS, M&A… and thought, “Okay, but which one is actually for me? The main types of investment banking services in Bangladesh fall into four big groups – equity services (shares), debt & sukuk services (bonds/Islamic), advisory services (M&A, restructuring), and portfolio management services (PMS) for investors.

This blog is your beginner-friendly menu card.
We’ll walk through each bucket in simple language, explain what it is, who it’s for, and when you might use it.

What Do We Mean by Investment Banking Services in Bangladesh?

In Bangladesh, most “investment banking” is done by licensed merchant banks and the investment arms of commercial banks.

When we say types of investment banking services in Bangladesh, we’re really talking about four main categories:

  • Equity capital services – IPO, RPO, rights issue, private placement
  • Debt capital & sukuk services – bonds, debentures, Islamic sukuk, structured deals
  • Advisory & corporate finance – M&A, restructuring, capital structure advice
  • Portfolio management services (PMS) – professional investing for individuals and institutions

You can think of a merchant bank as a financial project manager.
These services are the different tools they use to solve funding and investment problems for companies, governments, and serious investors.

Equity Capital Services in Bangladesh: IPO, RPO, Rights & Private Placements

Equity capital services help a company raise money by selling shares, instead of relying only on bank loans.

IPO Services in Bangladesh (Initial Public Offering)

An IPO is when a company sells shares to the public for the first time and gets listed on the DSE or CSE.

What the merchant bank does in an IPO:

  • Checks if an IPO is feasible and at what valuation range
  • Helps prepare the prospectus and all regulatory documents
  • Coordinates with BSEC, the stock exchange, auditors, lawyers
  • Manages the book-building or fixed-price process
  • Runs roadshows and marketing to attract investors

Who it’s for:
Mid to large companies with:

  • Several years of audited financials
  • A clear growth story
  • Owners who are ready for more transparency and public scrutiny

RPO & Rights Issue Services

Existing listed companies can raise more equity through:

  • RPO (Repeat Public Offer): offering more shares to the general public
  • Rights issue: offering new shares first to existing shareholders, usually at a discount

What the investment bank does:

  • Designs the offer structure (price, ratio, size)
  • Prepares required documents and gets approvals
  • Helps communicate with existing shareholders and the market

These services are useful when a listed company needs extra capital but doesn’t want to take on only more loans.

Private Placement Services

A private placement means raising equity from a small, selected group of investors – for example:

  • Local or foreign institutions
  • Family offices
  • High-net-worth individuals (HNWI)

Instead of going to the full public market, the company raises money in a more targeted, faster way.

Merchant bank role:

  • Write an information memorandum instead of a full prospectus
  • Help agree on valuation and terms
  • Introduce the company to serious investors and negotiate the deal

Private placements are common for pre-IPO rounds or when a business wants strategic investors instead of public ones.

Debt Capital & Sukuk Investment Banking Services in Bangladesh

Not every owner wants to dilute equity. That’s where debt capital market services come in.

Corporate Bonds & Debentures

Corporate bonds and debentures are long-term borrowing instruments.
Instead of taking a big bank loan, a company can raise money from many investors through bonds.

What the merchant bank does:

  • Designs the bond: tenure, coupon rate, security/collateral
  • Arranges a credit rating
  • Prepares the offer documents
  • Places the bonds with institutions, banks, funds, and HNWI

This type of investment banking service in Bangladesh suits companies that need long-term funding for projects, but want to keep ownership with existing shareholders.

Sukuk (Islamic Investment Certificates)

Sukuk is the Shariah-compliant alternative to conventional bonds.

Instead of straightforward interest, sukuk structures are based on:

  • Asset ownership
  • Profit-sharing
  • Lease or partnership models

Merchant bank’s role:

Sukuk services are especially important in a Muslim-majority market like Bangladesh.

Structured & Project Finance Solutions

For large infrastructure or energy projects, one simple bond or loan may not be enough.

Here, investment bankers may arrange:

  • Structured finance – combining loans, bonds, guarantees, and sometimes equity
  • Project finance – where repayment comes mainly from the project’s own cash flows

These services are more technical, but in plain words: they design a customized funding plan that matches long project timelines and risk profiles.

Advisory & Corporate Finance Services in Bangladesh

Some investment banking services don’t directly raise money. They help you make smarter decisions before you raise or spend big money.

M&A Advisory (Mergers & Acquisitions)

M&A services cover situations like:

  • You want to buy another company
  • You want to sell your company or a majority stake
  • Two companies want to merge

What the merchant bank does:

  • Helps identify buyers or sellers
  • Does valuation and suggests a price range
  • Designs the deal structure (cash vs shares, earn-outs, etc.)
  • Coordinates due diligence (financial, legal, tax)
  • Negotiates key terms and supports closing

If equity and debt are “how to get money”, M&A advisory is “how to buy/sell businesses themselves”.

Restructuring & Turnaround Advisory

When a business is under stress – too much debt, low cash flow – investment banking services can also include restructuring:

  • Talking to lenders about rescheduling or resettlement
  • Converting part of debt into equity
  • Bringing in new investors to stabilize the company

This is like financial surgery: not fun, but sometimes essential.

Capital Structure & Valuation Advice

Before any big move (IPO, bond, sale), you need clarity on:

  • How much debt vs equity is healthy for your business
  • What your company is really worth in the market

Merchant banks often start with these advisory services, then move to execution (IPO, bond, M&A) once you’re ready.

Portfolio Management Services (PMS) in Bangladesh

So far, we’ve talked about services mainly for companies.
Now, here are the types of investment banking services in Bangladesh that are designed for investors.

Discretionary Portfolio Management

In discretionary PMS, you hand over the day-to-day investment decisions to the merchant bank’s portfolio managers.

You agree on:

  • Your risk profile
  • Investment universe (stocks, bonds, sukuk, funds)
  • Return goals and time horizon

Then they make buy/sell decisions on your behalf and send you regular reports.

Best for:

  • HNWI and NRBs
  • Busy professionals
  • Business owners who don’t have time to track the market

Non-Discretionary / Advisory Portfolios

Here, the merchant bank:

  • Recommends trades, ideas and strategies
  • Shares research and market views

But you approve each transaction.

This suits investors who:

  • Want professional support
  • Still like to be involved in final decisions

Special Mandates for NRBs & Institutions

Many investment banking services in Bangladesh also include:

  • Custom portfolios for NRBs
  • Mandates for insurance companies, pension funds, mutual funds
  • Thematic strategies (e.g. Shariah-compliant only, large-cap only, etc.)

These allow both individuals and institutions to tap capital markets with professional help.

How to Choose the Right Type of Investment Banking Service for Your Situation

Now the practical part: which service do you actually need?

If You Want to Raise Money for Growth

Ask yourself:

  • Am I ready to share ownership?
    • If yes → look at IPO, RPO, rights issue, or private placement
    • If no → look at bonds, sukuk, or structured finance

Often, a merchant bank will run a feasibility study first and suggest a mix.

If You Want to Sell or Restructure Your Business

Your main services will be:

  • M&A advisory – if you want to sell part or all of the company, or buy another one
  • Restructuring advisory – if you need to fix your balance sheet or negotiate with lenders

Valuation and capital-structure advice usually come before these steps.

If You Want to Invest Money Professionally

Your keyword here is portfolio management services (PMS).

  • Discretionary PMS – if you want to delegate, with clear rules
  • Advisory PMS – if you want expert support but still decide trade by trade

Talk openly with the merchant bank about:

  • Your risk appetite
  • How much volatility you can tolerate
  • Your investment horizon (3 years? 10 years?)

Common Mistakes People Make with Investment Banking Services

A few things to avoid:

  • Waiting for a crisis before going to a merchant bank
  • Assuming IPO is the only solution for every funding need
  • Not having clean accounts and governance before starting a deal
  • Choosing a provider based only on lowest fee, ignoring track record and service quality
  • Expecting guaranteed returns from PMS or market products

Think of investment banking as a long-term partnership, not a one-time transaction.

FAQs on  Investment Banking Services in Bangladesh

What service do I need if I want to raise money for expansion?


If you’re okay with new shareholders, look at IPO, RPO, rights issues or private placements. If you want to keep ownership, explore bonds, debentures, sukuk or structured finance with a merchant bank.

What service should I use if I want to sell my company or bring in a strategic partner?


You need M&A advisory services – the merchant bank will help with valuation, finding buyers/investors, structuring the deal and supporting negotiations.

Which services are best if I don’t want to dilute ownership?


Focus on debt capital market services: corporate bonds, debentures, sukuk, and structured finance. These let you raise money while keeping shares largely with current owners.

What service should I look at if I want a professional to manage my savings?


Ask about portfolio management services (PMS). Discretionary PMS is usually best if you want a manager to handle decisions within a pre-agreed framework.

Can a small or family-owned business use investment banking services?


Yes, once your business is formal, audited, and of a reasonable size. Very small businesses usually start with bank loans; as you grow, merchant banking and capital-market solutions become more suitable.

Do I have to choose only one type of service at a time?


No. Often a company uses advisory first, then an equity or debt raise, and later M&A or restructuring as it grows. Think in terms of stages, not single products.