The Securities and Exchange Commission (SEC) will investigate into the unusual trading of the shares of Apex Adelchi Footwear Ltd, according to an SEC notice, reports bdnews24.com.
"Price movement and trading of Apex Footwear shares appear unusual to us," SEC executive director Anwarul Kabir Bhuiyan told the news agency Thursday.
"We have formed an inquiry committee to examine whether there is any manipulation going on in the trading of its shares."
The regulator was moved to investigate the matter after the footwear manufacturer had recorded a consistent rise in its share price since July 2, hitting a record high of Tk 2366 on September 13, up from just Tk 586.50 on July 2.
Its price dropped somewhat on profit taking this week, and closed at Tk 2206 Thursday, according to the Dhaka Stock Exchange (DSE).
On July 29, Apex Footwear announced its earnings per share had increased to Tk 107.31 in the six months to June 2007, from Tk 33.18 a year back.
Except for an un-audited report on earnings, the company has repeatedly declared it was holding no undisclosed price sensitive information regarding the unusual rise in share price.
Bhuiyan, however, said the SEC, as part of its investigation, might check with brokerage houses, individual clients and the company for share trading information on the footwear company.
A two-member team will conduct the enquiry and submit the report within 30 working days.
According to the SEC notice, "The commission has recently observed certain unusual trading of shares of Apex Adelchi Footwear. The commission is of the opinion that it is necessary in the public interest to cause an enquiry in this regard."
Apex Adelchi Footwear, listed with the DSE in 1993, has shown a steady growth in its earnings since 2002.
Sponsor shareholders hold 35 per cent of shares, while institutional shareholders and the public own 37 and 28 per cent of total shares.
SEC to probe Apex Adelchi share surge
FE Team | Published: September 22, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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