Dhaka, Bangladesh (BBN)-Bangladesh Securities and Exchange Commission (BSEC) Sunday postponed the initial public offering (IPO) subscription of Simtex Industries in the last moment due to ‘unavoidable circumstances’.
In this regard the securities regulator issued a directive through a letter sent to the Issuer company and issue managers.
The subscription of Simtex Industries was scheduled to begin on Monday (today) to raise a fund worth BDT 600 million from the public.
BSEC approved the IPO proposal of Simtex Industries to float 30 million ordinary shares at an offer price of BDT 20, including a premium of BDT 10 for each ten taka share on June 9, this year.
Both the bourses – Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE)-have also got the copy of the letter regarding the suspension of public subscription.
DSE managing director Prof. Dr. Swapan Kumar Bala and BSEC Executive Director Mohammad Saifur Rahman acknowledged the regulatory decision on postponement of IPO subscription.
According to BSEC letter, the company’s public subscription has been postponed ‘due to unavoidable’ circumstances.
“The company will have to make disclosure on regulatory decision on suspension of IPO subscription through four news papers — two Bengali and two English.
New schedule of the subscription will be notified later,” the BSEC letter said.
When asked, a senior BSEC official said the regulator has sought a clarification from the company.
“One of the disclosures made in IPO prospectus was not clear to the regulator. That’s why the BSEC has sought a clarification from the company. The company’s subscription will start soon if the clarification is satisfactory to us,” the BSEC official said.
Recently, the regulator also postponed the public subscription of Bangladesh National Insurance (BNI) following a letter of the Insurance Development and Regulatory Authority (IDRA).