SEC extends one week more on MJL listing
Thursday, 14 April 2011
FE Report
The securities regulator has extended further one week time for MJL Bangladesh Limited to get listed in the bourses of the country. The previous deadline expires today (Thursday). The company Monday sought two more weeks from the market regulator Securities and Exchange Commission (SEC) as it failed to get listing permission within the deadline fixed earlier. Now the securities regulator has granted one week time extension, sources in the SEC said. Initially MJL failed to get listed in the bourses within 75 days after the closing of its subscription, which is the stipulated time for getting listing in the bourses, according to the listing rules. The MJL again applied for time extension as both the bourses refused Sunday to accept listing proposal of the company as they pointed out that the shares of the company are overpriced. Sources said, both the bourses rejected the listing application of the company Sunday as the probe body formed on recent share market scam mentioned MJL name in its report. The probe committee observed that the offer price of the company, which recently completed its bidding process, was abnormal. The probe committee also mentioned that there was some inconsistency in the submitted financial information of MJL. The MJL floated 40 million shares with the face value of Tk 10 each at a premium of Tk 142.40 per share. Under the book building system, the offer price of each of MJL shares has been fixed at Tk 152.40. Accepting the fact that the each share price of MJL was fixed overpriced, the authorities of MJL offered to give 30 per cent stock dividend prior to their listing as a way of making compensation to the general investors. But the authorities of the stock exchange observed that such dividend could not actually compensate the general investor. They also opined that there is no chance of bringing change in the company's fundamental by giving stock dividend. Meanwhile, sources in the MJL said, the company will sit next week to determine next course of action after getting time extension for listing.
The securities regulator has extended further one week time for MJL Bangladesh Limited to get listed in the bourses of the country. The previous deadline expires today (Thursday). The company Monday sought two more weeks from the market regulator Securities and Exchange Commission (SEC) as it failed to get listing permission within the deadline fixed earlier. Now the securities regulator has granted one week time extension, sources in the SEC said. Initially MJL failed to get listed in the bourses within 75 days after the closing of its subscription, which is the stipulated time for getting listing in the bourses, according to the listing rules. The MJL again applied for time extension as both the bourses refused Sunday to accept listing proposal of the company as they pointed out that the shares of the company are overpriced. Sources said, both the bourses rejected the listing application of the company Sunday as the probe body formed on recent share market scam mentioned MJL name in its report. The probe committee observed that the offer price of the company, which recently completed its bidding process, was abnormal. The probe committee also mentioned that there was some inconsistency in the submitted financial information of MJL. The MJL floated 40 million shares with the face value of Tk 10 each at a premium of Tk 142.40 per share. Under the book building system, the offer price of each of MJL shares has been fixed at Tk 152.40. Accepting the fact that the each share price of MJL was fixed overpriced, the authorities of MJL offered to give 30 per cent stock dividend prior to their listing as a way of making compensation to the general investors. But the authorities of the stock exchange observed that such dividend could not actually compensate the general investor. They also opined that there is no chance of bringing change in the company's fundamental by giving stock dividend. Meanwhile, sources in the MJL said, the company will sit next week to determine next course of action after getting time extension for listing.