DSE to probe abnormal price hike of Legacy Footwear

The securities regulator has asked the Dhaka bourse to look into share transactions of Legacy Footwear that has experienced abnormal price hike since March.
The Bangladesh Securities and Exchange Commission (BSEC) on Monday sent a letter to the Dhaka Stock Exchange, giving the instruction.
Legacy Footwear rose 223 per cent, or Tk 94.20, to Tk 136.50 between March 19 and August 6. As per the regulatory instruction, the premier bourse will examine transactions made during the period.
The DSE will have to submit its inquiry report to the commission within 20 working days from the date of issuance of the order.
The company has drawn flak this week over the disbursement of placement shares to sponsor-directors and many other companies and individuals at a price of Tk 10.
General shareholders were not offered any shares as the company was unable to issue rights shares.
Retail investors are at risk of enduring a heavy blow of price corrections while the owners of new shares will bag hefty profits.
Meanwhile, the BSEC on Thursday allowed Sikder Insurance Company to raise Tk 160 million by floating an IPO (initial public offering).
The company will offload 16 million shares at Tk 10 each.
It will utilise the fund to invest in FDR (Fixed Deposit Receipts), capital market and to purchase property.
As per the audited financial statement for the year ended in December 2022, the company's earnings per share (EPS) was Tk 1.22 while net asset value per share Tk 28.73 (without revaluation surplus).

mufazzal.fe@gmail.com