MI Cement to be listed
Monday, 25 April 2011
FE Report
The securities regulator has decided to pave the way for the listing of MI Cement after the company has assured the authority to arrange separate fund and share mortgage for the compensation of shareholders, officials said. The decision came Sunday after a tri-partite meeting held among Securities and Exchange Commission, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Earlier, the SEC set a condition for the listing of MI Cement to buy the shares of intending shareholders if the market price of the company goes down within six months from the date of listing. As per regulatory condition, MI Cement will create a fund of Tk 50 million for the compensation of its shareholders. The company will also make a mortgage of 25 per cent shares (7.5 million) of company directors to DSE, so that this authority can make compensation to the shareholders by selling these shares. In that case, the SEC will ease the lock-in period on the shares of company directors. The DSE President Shakil Rizvi said they would go for the listing of the company after the SEC issued a directive on the issue. Cement sector shares showed a strong performance in the stock trading in recent years with the possibilities of construction of large bridges and road-expansion projects including the Expressway services.
The securities regulator has decided to pave the way for the listing of MI Cement after the company has assured the authority to arrange separate fund and share mortgage for the compensation of shareholders, officials said. The decision came Sunday after a tri-partite meeting held among Securities and Exchange Commission, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Earlier, the SEC set a condition for the listing of MI Cement to buy the shares of intending shareholders if the market price of the company goes down within six months from the date of listing. As per regulatory condition, MI Cement will create a fund of Tk 50 million for the compensation of its shareholders. The company will also make a mortgage of 25 per cent shares (7.5 million) of company directors to DSE, so that this authority can make compensation to the shareholders by selling these shares. In that case, the SEC will ease the lock-in period on the shares of company directors. The DSE President Shakil Rizvi said they would go for the listing of the company after the SEC issued a directive on the issue. Cement sector shares showed a strong performance in the stock trading in recent years with the possibilities of construction of large bridges and road-expansion projects including the Expressway services.