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Bangladesh's stocks have been going through a bull run prompting fears of a bubble.
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On Monday the market fell 2.3 percent, reportedly the steepest one-day fall in 10 years.
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The Daily Star newspaper said LankaBangla Finance was planning to list LankaBangla Securities subject to regulatory approval.
"The raised funds will be used for business expansion and diversification," the newspaper quoted Mohammed Nasir Uddin Chowdhury, chief executive officer of LankaBangla Securities, as saying.
LankaBangla Finance is now 13.55 percent owned by Sampath Bank according to information published by the firm.
At the end of 2008 Sampath held a 22.
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86 percent stake in the firm, but has sold down a part of it over the last year.
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LankaBangla Finance's share price has risen sharply following higher profits, media reports said.