Chittagong Stock Exchange (CSE) 5 May gave listing permission to MI Cement in compliance with a directive from the regulator. Recently capital market watchdog, Securities Exchange Commission (SEC) gave directive to DSE and CSE to enlist MI Cement in order to protect the investor’s interest. Following the directive CSE secretariat decided that MI Cement will start trade from 8 May, 2011.
Earlier DSE board turned down the MI Cement listing application by making an appeal to the capital market regulator to reconsider their directive. They opined rather giving listing permission to the MI Cement it will be wise to refund the investor’s IPO money in the current market situation. Sources in the DSE said, in an official letter sent to the SEC, DSE has explained in which ground they opened in favour of refunding the money to the investors. When contacted CSE president Fakhhor Uddin Ali Ahmed told, "we have found that the financial fundamentals of the MI Cement remained quite strong to get listing permission in the bourses". According to the submitted financial report to the CSE, MI Cement Earning Per Share stood at BDT 5.53 for nine months and Net Asset Value BDT 50.93 per share.
MI Cement offered cash companion in case of any primary shareholders sells their share under in the indicative price within 6 months of trading from the directors’ money. They have opened a bank account by depositing BDT 500 million to compensate the investors in the first stage. The officials of MI Cement decided to deposit additional money, if requires. In addition to that, MI Cement authority will also transfer two million shares of company directors in favour of the CSE account as part of the compensation plan. SEC has given waiver in the first 6 months as lock-in period for shares of directors’ portion. According to the existing law, manufacturing company sponsor portion has a lock- in period of 3 years from the date of listing. Each indicative share price has been fixed at BDT 111.60 against face value of BDT 10 each.
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