MJL seeks two more weeks to settle listing issue

FE Report

The state-run fuel company Mobil Jamuna Lubricants (MJL) Monday sought two more weeks from the securities regulator as it failed to be listed within the deadline the regulator fixed earlier.

The MJL authorities applied for time extension as both the bourses refused Sunday to accept listing proposal of the company as they think that the shares of the company are overpriced.

An official of the Securities and Exchange Commission (SEC) said the MJL authorities submitted an application to the SEC Monday seeking two more weeks to settle the issue.

But the official was reluctant to make comment about the future of the company’s listing issue.

Both the bourses rejected the listing application of the company Sunday as the probe body formed on recent share market scam mentioned in its reportthat the offer price of the company, which recently completed its bidding process, was abnormal.

The company has offered 30 per cent stock dividend in compensation to the general investors. But the bourses observed that such dividend could not change the company fundamentals so the offer price would not be questionable.

Ahasanul Islam, senior vice-president of DSE, said as per their decision the company would have to refund the money it collected from its shareholders within 15 days of listing refusal.

The MJL has floated 40 million shares with the face value of Tk 10 each at a premium of Tk 142.40 per share. Under the book building system, the offer price of each of MJL shares has been fixed at Tk 152.40.

Source: The financial express, 12 April, 2011

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