MI Cement to compensate shareholders
Thursday, 24 March 2011
FE Report
MI Cement, an aspirant company to be listed with the two bourses of the country has agreed to compensate their primary shareholders if the prices fall below offer prices within six months of start of the trading. Earlier, another listed aspirant company Mobil Jamuna Lubricants (MJL) agreed to compensate share if the price falls below the offer price after trading starts in the market under book building system. Sources in the Securities and Exchange Commission has confirmed that the authorities of MI Cement gave an undertaking to the capital market regulator in this connection on Tuesday Earlier, SEC sent a letter to MI Cement and MJL, asking them to buy back their IPO shares only once those fall below the offer prices. Shah Alam, Company Secretary of MI Cement told FE that if the price falls below the cut off price after the start of trading, we will give compensation to the investor from the premium account. MI Cement already raised money from the investor by floating 30 million share with face value of Tk 10 per share. Under the book building system, MI cement authority has taken Tk 101.60 premium per share with each share issued at Tk 111.60 to the investors. As per the submitted financial data of MI cement to the DSE, Earning Per Share (EPS) of MI Cement
MI Cement, an aspirant company to be listed with the two bourses of the country has agreed to compensate their primary shareholders if the prices fall below offer prices within six months of start of the trading. Earlier, another listed aspirant company Mobil Jamuna Lubricants (MJL) agreed to compensate share if the price falls below the offer price after trading starts in the market under book building system. Sources in the Securities and Exchange Commission has confirmed that the authorities of MI Cement gave an undertaking to the capital market regulator in this connection on Tuesday Earlier, SEC sent a letter to MI Cement and MJL, asking them to buy back their IPO shares only once those fall below the offer prices. Shah Alam, Company Secretary of MI Cement told FE that if the price falls below the cut off price after the start of trading, we will give compensation to the investor from the premium account. MI Cement already raised money from the investor by floating 30 million share with face value of Tk 10 per share. Under the book building system, MI cement authority has taken Tk 101.60 premium per share with each share issued at Tk 111.60 to the investors. As per the submitted financial data of MI cement to the DSE, Earning Per Share (EPS) of MI Cement