The Bangladesh Securities and Exchange Commission (BSEC) has suspended IPO subscription of Apollo Ispat Complex Limited responding to finance ministry’s directive.
The IPO subscription of Appolo Ispat Complex was scheduled to start on March 3, 2013.
The decision came from a commission meeting held on Tuesday chaired by its chairman M Khairul Hossain.
Earlier on February 7, Finance Minister AMA Muhith asked the BSEC to postponed subscription of initial public offerings (IPO) of Apollo Ispat Complex Limited as the ministry found various irregularities against the company.
Finance minister also directed the market regulator to take stern actions against the forgery and illegal activities of the company.
The commission in a statement said that the BSEC approved the IPO complying Securities and Exchange Commission (public issue) Rules, 2006.
The commission also said that according to the Bangladesh Bank CIB reports the commission did not find any loan defaulters or tax defaulter among the company’s directors or shares holders.
The stock regulator also said a share holder brought allegation against the AICL management but the commission did not respond to his allegation as he holds shares less than 5 percent.
The BSEC cancelled the IPO prospectus in 2011 as it found irregularities and fabricated information in the prospectus.
Earlier, on December 13, last year the BSEC approved the initial public offering (IPO) of Apollo Ispat Complex to raise Tk 2.20 billion from the public.
The company opted to offload 100 million ordinary shares of Tk 10 each at an offer price of Tk 22 including a premium of Tk 12.
The company has reported earning per share (EPS) of Tk 2.36 and net asset value (NAV) of Tk 22.59, according to financial report ended on June 30, 2012.