Amid widespread criticism, the stock market regulator has finally suspended the qualified investor offer (QIO) subscription for Doer Services PLC, a company awaiting listing on the SME platform.
Bangladesh Securities and Exchange Commission (BSEC) made the decision of postponement at a meeting held on Tuesday, citing the need to protect interests of investors and the capital market.
BSEC Chairman Khondoker Rashed Maqsood presided over the meeting.
The commission has also decided to form an investigation committee comprising representatives from both the BSEC and the Dhaka Stock Exchange.
"The final decision regarding the QIO will be taken after the report of the inquiry committee is received," said a BSEC statement.
According to BSEC, Doer Services applied to the market regulator on April 27 last year seeking approval to raise Tk 50 million through QIO for business expansion.
Under the previous commission led by former BSEC Chairman Professor Shibli Rubaiyat-ul-Islam, the application was approved on June 9, 2024, with certain conditions.
And the present commission, led by Chairman Khondoker Rashed Maqsood, on December 5, 2024, issued a consent letter to Doer Services, allowing the company to raise Tk 50 million through the QIO.
After receiving the consent letter from the securities regulator, Doer Services scheduled the share subscription period from January 19 to January 23.
The company planned to issue 5 million ordinary shares, each with a face value of Tk 10, under the fixed price method.
The BSEC took the latest move following concerns raised by media reports regarding the company's service agreements with its clients, profitability, and future income sources.
"These matters have come to the securities regulator's notice," the BSEC said in the statement.
Following the media reports, the BSEC has decided to suspend QIO subscription and form an inquiry committee to look into the overall matters of Doer Services, it added.
Saiful Islam, president of DSE Brokers Association of Bangladesh (DBA), welcomed the regulatory decision, saying it would ensure transparency and accountability in the capital market, ultimately helping to restore investor confidence in the market.
He pointed out that in the past, many weak companies had damaged the integrity of the market by raising funds through Initial Public Offerings (IPOs). These companies manipulated share prices and deceived investors, causing millions of taka in losses for them.
Doer Services began operations in February 2015, offering a range of principal products and services, including software development, software customization, web page and data transmission, agent banking, as well as software maintenance and call center services.
Agrani Bank and Insurance Development Regulatory Authority are the major clients of the company.
According to the QIO prospectus, the company's earnings per share stood at Tk 4.86 for FY23, while net asset value per share reached Tk 17.85.
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