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'Overvaluation' of assets

Regulator suspends IPO subscription of Asiatic Laboratories

FE REPORT | January 16, 2023 00:00:00

The securities regulator has suspended IPO (initial public offering) subscription of Asiatic Laboratories over the allegations regarding 'over valuation' of assets and 'disputes' in ownership.

Bangladesh Securities and Exchange Commission (BSEC) on Sunday took the decision just a day before commencing the company's public subscription.

The regulator has also formed a two-member body to probe into the allegations - the body will submit a report within seven working days.

"The BSEC will take the next decision based on the report of the probe body," said Mohammad Rezaul Karim, BSEC executive director and the spokesperson.

He said the regulator will fix a new subscription period if the allegations are proved false, or another decision will be taken based on the findings.

The IPO subscription of Asiatic Laboratories was supposed to be conducted on January 16-22 to raise Tk 950 million from the capital market under the book-building method.

The cut-off price of the company's shares was set at Tk 50 each through bids by eligible investors.

The general shareholders were offered with a 60 per cent discount from the cut-off price fixed for eligible investors.

The drug maker will issue about 34.55 million ordinary shares of which 25 per cent or 8.84 million have been kept reserved for eligible investors.

The remaining 25.91 million shares will be issued to the general public, including non-resident Bangladeshis, at Tk 20 each, as per the regulatory approval.

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