FE Report (March 22, 2011)
The authorities of Mobil Jamuna Lubricants (MJL) have agreed to buy back their shares within six months of trading if the prices fall below offer prices, while the MI Cement Factory authorities are yet to take decision in this connection.
The authorities of MJL gave an undertaking to the capital market regulator in this connection Sunday, MJL official sources told the FE Monday.
The MJL authorities had received a letter from the Securities and Exchange Commission (SEC) to sign a deal in this connection three days back.
It is expected that the company will sign an agreement with the bourses to be listed today (Tuesday) or tomorrow (Wednesday).
When asked, officials at the MI Cement Factory said they will hold a meeting today (Tuesday) to discuss about the SEC letter relating to buy back of shares.
MI Cement officials said they received a letter from the SEC in this connection Monday.
Chief Financial Officer of MI Cement Md Mukter Hossian Talukder told the FE: "We will discuss about it and will try to follow the SEC directives."
The SEC sent letters to the authorities of the two companies asking them to buy back their IPO shares only once those fall below the offer prices.
According to the SEC Rules, companies' initial public offering (IPO) will be scrapped once they fail to be listed within 75 days of subscription.
The IPO of MJL will be suspended today (Tuesday) if it fails to be listed with the bourses, while the MI Cement expires on March 29.
Closing date for MJL IPO subscription was January 3, while MI Cement was January 13.
The authorities of MJL gave an undertaking to the capital market regulator in this connection Sunday, MJL official sources told the FE Monday.
The MJL authorities had received a letter from the Securities and Exchange Commission (SEC) to sign a deal in this connection three days back.
It is expected that the company will sign an agreement with the bourses to be listed today (Tuesday) or tomorrow (Wednesday).
When asked, officials at the MI Cement Factory said they will hold a meeting today (Tuesday) to discuss about the SEC letter relating to buy back of shares.
MI Cement officials said they received a letter from the SEC in this connection Monday.
Chief Financial Officer of MI Cement Md Mukter Hossian Talukder told the FE: "We will discuss about it and will try to follow the SEC directives."
The SEC sent letters to the authorities of the two companies asking them to buy back their IPO shares only once those fall below the offer prices.
According to the SEC Rules, companies' initial public offering (IPO) will be scrapped once they fail to be listed within 75 days of subscription.
The IPO of MJL will be suspended today (Tuesday) if it fails to be listed with the bourses, while the MI Cement expires on March 29.
Closing date for MJL IPO subscription was January 3, while MI Cement was January 13.
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