MI Cement makes debut on CSE Sunday
Friday, 6 May 2011
FE Report
Chittagong Stock Exchange (CSE) Thursday gave listing permission to MI Cement in compliance with a directive from the regulator. Recently capital market watchdog, Securities And Exchange Commission (SEC) gave directive to DSE and CSE to enlist MI Cement in order to protect the investor's interest. Following the directive CSE secretariat decided that MI Cement will start trade from Sunday. Earlier, Dhaka Stock Exchange (DSE) board turned down the MI Cement listing application by making a appeal to the capital market regulator to reconsider their directive. They opined rather giving listing permission to the MI Cement it will be wise to refund the investor's IPO money in the current market situation. Sources in the DSE said, in an official letter sent to the SEC, DSE has explained in which ground they opined in favour of refunding the money to the investors. When contacted CSE president Fakhhor Udddin Ali Ahmed told FE: "we have found that the financial fundamentals of MI Cement remained quite strong to get listing permission in the bourses". According to the submitted financial report to the CSE, MI Cement Earning Per Share (EPS) stood at 5.53 for nine months and Net Asset Value (NAV) Tk 50.93 per share. MI Cement offered cash compensation in case of any primary shareholders sells their share under the indicative price within six months of trading from its directors' money. They have opened a bank account by depositing Tk 500 million to compensate the investors in the first stage. The officials of MI Cement decided to deposit additional money, if requires. In addition to that, MI Cement authority will also transfer 2 million shares of company directors in favour of the CSE account as part of the compensation plan. SEC has given waiver in the first six months as lock in period for shares of directors portion. According to the existing law, manufacturing company sponsor portion has a lock-in period of three years from the date of listing. . Each indicative share price has been fixed at Tk 111.60 against face value of Tk10 each. Meanwhile, CSE president informed that investors who has BO account with a DSE member will be able to transact MI Cement shares through opening a link account with the CSE member.
Chittagong Stock Exchange (CSE) Thursday gave listing permission to MI Cement in compliance with a directive from the regulator. Recently capital market watchdog, Securities And Exchange Commission (SEC) gave directive to DSE and CSE to enlist MI Cement in order to protect the investor's interest. Following the directive CSE secretariat decided that MI Cement will start trade from Sunday. Earlier, Dhaka Stock Exchange (DSE) board turned down the MI Cement listing application by making a appeal to the capital market regulator to reconsider their directive. They opined rather giving listing permission to the MI Cement it will be wise to refund the investor's IPO money in the current market situation. Sources in the DSE said, in an official letter sent to the SEC, DSE has explained in which ground they opined in favour of refunding the money to the investors. When contacted CSE president Fakhhor Udddin Ali Ahmed told FE: "we have found that the financial fundamentals of MI Cement remained quite strong to get listing permission in the bourses". According to the submitted financial report to the CSE, MI Cement Earning Per Share (EPS) stood at 5.53 for nine months and Net Asset Value (NAV) Tk 50.93 per share. MI Cement offered cash compensation in case of any primary shareholders sells their share under the indicative price within six months of trading from its directors' money. They have opened a bank account by depositing Tk 500 million to compensate the investors in the first stage. The officials of MI Cement decided to deposit additional money, if requires. In addition to that, MI Cement authority will also transfer 2 million shares of company directors in favour of the CSE account as part of the compensation plan. SEC has given waiver in the first six months as lock in period for shares of directors portion. According to the existing law, manufacturing company sponsor portion has a lock-in period of three years from the date of listing. . Each indicative share price has been fixed at Tk 111.60 against face value of Tk10 each. Meanwhile, CSE president informed that investors who has BO account with a DSE member will be able to transact MI Cement shares through opening a link account with the CSE member.