Floor price now applicable for newly-listed companies
Cos to be transferred to the main board from OTC also come under the system
FE Report | Thursday, 2 July 2020
The opening prices of the shares of newly-listed companies will be their floor prices after commencing trading on the bourses.
The Bangladesh Securities and Exchange Commission (BSEC) has set the floor price for the new companies which will be listed under fixed price and book building method.
As per another decision, a company's last closing price at the OTC (over-the-counter) market will be its floor price after its relisting with the main board.
The floor price is the lowest price of the listed securities and trading of no securities will be allowed under this price.
As per the BSEC's decision, the floor price of the shares of a company which went public under fixed price method will be Tk 10 each, also the opening price.
On the other hand, the floor price of the shares of a company which went public under book building method will be price at which general investors get shares through IPO (initial public offering).
Earlier, the securities regulator set the floor prices for all listed companies taking into account the average of the closing prices of immediate preceding five trading days as of March 19.
It introduced the floor price to contain the free fall of the capital market amid COVID-19 pandemics.
In its previous directive, the securities regulator had not mentioned the floor price to be applicable for the newly-listed companies or for the companies which will be transferred to the main board from the OTC market.
Public subscription of Express Insurance presently is going on under the fixed price method, while Walton Hi-Tech Industries recently got the regulatory approval to float IPO under the book building method.
As per the BSEC's latest directive, the floor price of the shares of Express Insurance will be Tk 10 as it issued shares at this price.
On the other hand, the floor price of Walton Hi-Tech Industries will be Tk 252 at which general investors are eligible to purchase IPO shares.
The Dhaka Stock Exchange (DSE) has approved the relisting of Sonali Paper & Board Mills, a company of the OTC market, with the main board. The company's share trading will resume at the main board today (Thursday).
The company's last closing price was price Tk 272 each on January 30 last.
As per the BSEC's decision, the floor price of the company's shares will be Tk 272 at main board.