A move has been made by the Bangladesh Securities and Exchange Commission to delist 8 more companies trading on the over-the-counter market after repaying the general investors’ claims in line with the commission’s exit plan scheme.
The directive would send 15 OTC companies to the small medium enterprise (SME) platform and 25 others to the alternative trading board of the stock exchanges. The moves were made by the regulators after receiving reports from the country’s two stock exchanges.
The BSEC has asked the Dhaka Stock Exchange and the Chittagong Stock Exchange on December 15, 2020, to appoint special auditors to review the business affairs of 21 OTC market companies which are in operation, submit a detailed report on another 43 OTC companies which are not in business operation.
Shaikh Shamsuddin Ahmed, the BSEC commissioner, stated that the regulator made a list of 8 companies to let them exit, taking into consideration their weak business situation. He also stated that the commission had called them to discuss the issue.
‘We don’t want to delist a company until it forces us to do so,’ he said.
Shaikh Shamsuddin also said that a number of companies would also be sent to the alternative trading board and a number of others to the SME board on the basis of their business strength.
Arbee Textiles, Chic Tex, Eagle Star Textile Mills, German Bangla JV Food, M Hossain Garments Washing & Dying, Maq Enterprises, The Engineers and Tulip Dairy & Food Products are the 8 companies which would be delisted under the exit plans.
The BSEC issued the mandate on the exit plan to the delisted companies on December 28, 2020, stating that non-performing delisted company under OTC could apply for an exit and the commission might also ask them to do so.
As stated by the rule, these companies should prepare an exit plan for the purchase of all the securities held by the shareholders other than sponsor-directors at face value, or the price of the issues during the initial public offering (IPO), last trade price on the date of trading suspension, net asset value (NAV) per share, the last one-year weighted average price, whichever is higher.
The BSEC has planned to transfer Bangladesh Hotels, Bengal Biscuits, Gachi Hata Aquaculture Farms, Himadri Limited, Mona Food Products, Padma Printers & Color, Rangamati Food Products, Wonderland Toys, Yousuf Flour Mills, Hill Plantation, Dhaka Fisheries, Azadi Printers, Gulf Foods, Meghna Shrimp Culture, and Phoenix Leather Complex to the SME board.
15 companies, has been stated by the BSEC officials, that would allow those companies to raise capital through repeat public offerings (RPO) to address their capital need.
The capital raising would be as per the qualified investor offer by small capital companies’ rules.
The regulator would also send Al-amin Chemical Industries, Excelsior Shoes, Lexco, Modern Industries, United Airways (BD), Metalex Corporation, Alpha Tobacco Manufacturing Co Therapeutics (Bangladesh), Sreepur Textile Mills, Pharmaco International, Ashraf Textile Mills, Bengal Fine Ceramics, Mita Textiles, Amam Seafood Industries, Bangla Process Industries, Bangladesh Electricity Meter Company, Bionic Seafood Exports, Dynamic Textile Industries, Modern Cement, Perfume Chemical Industries, Petro Synthetic Products, Quasem Silk Mills,
Quasem Textile Mills, Raspit Inc Bd, Raspit Data Management & Telecommunications, Rose Heaven Ball Pen, and Saleh Carpet Mills to the ATB.
Earlier on September 30, 2020, the BSEC delisted four OTC companies which included the likes of Bangladesh Chemical Industries, Bangladesh Dyeing & Finishing Ind, Bangladesh Luggage Industries and Bangladesh Zipper Industries.