Dhaka, Bangladesh (BBN) – The Securities and Exchange Commission (SEC) has extended further one week time for MJL Bangladesh Limited to get listed in the bourses of the country.
The company has sought two more weeks from the securities market regulators it failed to get listing permission within the deadline fixed earlier. The
Now the SEC has granted one week time extension, officials said, adding that the previous deadline expires on Thursday.
Under the existing listing rules, initially MJL failed to get listed in the bourses within 75 days after the closing of its subscription, which is the stipulated time for getting listing in the bourses.
The MJL again applied for time extension as both the bourses refused Sunday to accept listing proposal of the company as they pointed out that the shares of the company are overpriced.
Meanwhile, both the bourses rejected the listing application of the company Sunday as the probe body formed on recent share market scam mentioned MJL name in its report.
The probe committee observed that the offer price of the company, which recently completed its bidding process, was abnormal. The probe committee also mentioned that there was some inconsistency in the submitted financial information of MJL.
The MJL floated 40 million shares with the face value of BDT 10 each at a premium of BDT 142.40 per share. Under the book building system, the offer price of each of MJL shares has been fixed at BDT 152.40.
Accepting the fact that the each share price of MJL was fixed overpriced, the authorities of MJL offered to give 30 percent stock dividend prior to their listing as a way of making compensation to the general investors.
But the authorities of the stock exchange observed that such dividend could not actually compensate the general investor. They also opined that there is no chance of bringing change in the company’s fundamental by giving stock dividend.
BBN/SSR/AD-14Apr11-3:07 pm (BST)