Bourses reject MI Cement listing

The bourses rejected the listing of MI Cement Factory Ltd in the stockmarket yesterday.

The bourses requested the Securities and Exchange Commission (SEC) to ask the company to return the initial public offering (IPO) money to the investors for the market’s greater interest.

Ahasanul Islam, senior-vice president of Dhaka Stock Exchange, said: “We requested the SEC to ask the company to return money to the investors as per the section 20(A).”

Now the market is facing a credit crunch, so it will be best to return the money of the investors, said a director of MI Cement. After the SEC is restructured, the company could go for new IPO, he added.

Earlier, MI Cement proposed that sponsor directors will compensate the investors if share prices go below offer price within first six months of trading. The company was supposed to deposit Tk 5 crore in security funds to fulfil the compensation package before receiving the listing approval from the bourses.

Source: The daily star, 4 May, 2011.

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