SEC rejects IPO proposal of ML Dyeing

Express (August 05, 2011)

The securities regulator has rejected the IPO (initial public offering) proposal of ML Dyeing as the company earlier raised its paid-up capital of Tk 602.15 million without regulatory consent, officials said.

The Securities and Exchange Commission (SEC) rejected the IPO proposal of the company at its commission meeting held recently.

According to officials, ML Dyeing raised its paid-up capital of Tk 602.15 million without taking prior permission of the SEC.

"As a result, the company violated the capital issue clause of the Securities and Exchange Ordinance, 1969," the officials said.

The regulator is likely to take necessary measures against the company for violating securities laws.

The company's existing paid-up capital is Tk 702 million. On January 14, 2010, the company raised a fund amounting to Tk 99.8 million.

In the same year, ML Dyeing raised a capital of Tk 602.15 million.

However, the company submitted its IPO proposal to the SEC for going public under fixed price method to raise a fund of Tk 900 million, offering 30 million shares of Tk 10 each, at an offer price of Tk 30, including a premium of Tk 20.