BSEC plans to delist 8 more OTC cos under exit scheme

​The Bangladesh Securities and Exchange Commission has moved to delist eight more companies trading on the over-the-counter market after repaying general investors’ claims as per the commission’s exit plan directive.

It would also send 15 OTC companies to the small medium enterprise platform and 25 others to the alternative trading board of the stock exchanges.

The regulator made the move after receiving reports from the country’s two stock exchanges.

Earlier on December 15, 2020, the BSEC asked the Dhaka Stock Exchange and the Chittagong Stock Exchange 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.

BSEC commissioner Shaikh Shamsuddin Ahmed told New Age that the regulator made a list of eight companies to let them exit considering their weak business situation.

He also said 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.

The eight companies which would be delisted under exit plan are 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.

On December 28, 2020, the BSEC issued the directive on exit plan of delisted securities, stating that non-performing delisted company under OTC could apply for an exit and the commission might also ask them to do so.

Such companies must prepare an exit plan for buying all the securities held by the shareholders other than sponsor-directors at face value, or issue price at the time of initial public offering, last trade price on the date on trading suspension, net asset value per share, last one year weighted average price, whichever is higher, the rule said.

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.

BSEC officials said that the 15 companies would be allowed 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 Sea Food 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 — Bangladesh Chemical Industries, Bangladesh Dyeing & Finishing Ind, Bangladesh Luggage Industries and Bangladesh Zipper Industries.

Source: ​newagebd