The Dhaka Stock Exchange (DSE) has brought back Wata Chemicals Limited at the main market from the over-the-counter (OTC) effective from tomorrow (Wednesday), officials said.
The Wata Chemicals was shifted to the OTC market with other 49 companies in 2009 due to failure to hold annual general meeting (AGM), disburse any dividend and continue production.
OTC market is a separate trading floor for trading of junk shares. The OTC market is meant for those companies that are not in operation or fail to hold AGMs or declare dividends or do not convert their paper shares into electronic ones. Presently, 67 companies, excluding Wata Chemicals, are enlisted on the OTC market of the DSE.
In August 2013, the Bangladesh Securities and Exchange Commission (BSEC) gave its consent on the re-listing following the company's plea to turn back to main bourse after disbursing dividend and holding AGM.
The securities regulator asked the bourses to take measures for re-listing of the Wata Chemicals as per the exchanges' listing regulations.
The chemicals company filed appeals three times to the DSE after it became regularised in holding annual general meetings and paying dividends to its shareholders.
"As per decision of the board of directors of DSE, trading of the shares of Wata Chemicals Ltd. has been transferred from the OTC market to the main market of DSE with effect from May 14, 2014 under 'A' category in accordance with Regulation 2(1) (a) of the Dhaka Stock Exchange (Settlement of Transactions) Regulations, 2013," said a statement posted on DSE website on Monday.
DSE trading code for Wata Chemicals Ltd is 'WATACHEM', DSE company code # 18467, face value Tk. 10 each, market lot 200 shares and open adjusted price is Tk. 49.50 (last close price at DSE OTC market), the statement said.
The circuit breaker and circuit filter (price limit) shall remain operative from the first trading day (May 14, 2014) at DSE as shares of the company have already been traded and market price is available in the DSE OTC market, added the statement.
The Wata Chemicals was listed with the premier bourse in 1992 but failed to disburse dividends during the period from 2003 to 2009. The company, however, disbursed dividends in 2010, 2011 and 2012 by holding AGMs. It disbursed 20 per cent stock dividends in 2012, 12 per cent cash dividends in 2011 and 10 per cent cash dividends in 2010.
Presently, the paid-up capital of the Wata Chemicals is Tk 40.5 million and the amount of reserved money is of Tk 454.82 million, according to the DSE website.
Of the total shares - 50 per cent shares of the company are in sponsor/directors hands and 50 per cent shares in public hands, according to DSE website.
