FE Report (March 10, 2011)
The listing of the Mobil Jamuna Lubricants (MJL) and the MI Cement has become uncertain as the companies are found to be reluctant to comply with the government's decision on buying back of their shares, sources said.
The uncertainty surfaced following the Ministry of Finance's advice to the Securities and Exchange Commission (SEC) to impose a condition on both the companies to buy back their shares from the intending shareholders if the market prices of the same go down below the offer prices within six months from the date of their listing.
Earlier, the SEC approved the IPOs (initial public offerings) of the MJL and the MI Cement after both the companies agreed in writing to buy their shares back if the market prices of the same go down below the offer prices within one month from the day of their respective listing.
According a competent source, the ministry of finance has, lately, told the SEC to ask both the MJL and the MI to give assurance to the effect that they would buy their shares back if market prices of the same go down below the offer prices within next six months from the date of listing.
But the MJL has sought two months' time for listing and the MI Cement has not responded to the call of the SEC.
They are reluctant to comply with the regulatory decision taken at the advice of the Ministry of Finance.
The listing of the two companies might be cancelled if they fail to comply with regulatory decision, sources added.
In that case, the companies will have to return the money to their shareholders.
The authorities of the MJL and the MI Cement were not available for comment on the issue.
However, DSE President Shakil Rizvi said the complexity involving the MJL and the MI Cement should be solved on an urgent basis for the greater interest of the companies concerned and their shareholders.
The IPO lotteries of the MJL and the MI Cement were held on January 31 and February 9 respectively.
The MJL collected Tk 6.09 billion against the shares worth Tk 400 million from the investor under the book building method.
On the other hand, the MI Cement collected Tk 3.04 billion against the shares worth Tk 300 million using the same method.
The indicative prices of the MJL and the MI Cement shares were fixed at Tk 152.40 and Tk 111.60 respectively having a face value of Tk 10 each.
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