The Bangladesh Securities and Exchange Commission on Tuesday rejected the Tk 15 crore initial public offering proposal of Chartered Life Insurance Company Limited for non-compliance with securities rules.
The BSEC sent a letter to the company regarding the issue on the day.
In the letter, the BSEC said that the regulator found in the company’s draft IPO prospectus that the company’s earnings per share were negative for the last four years till 2019.
The regulator also found that the net asset value of the company was constantly less than its face value Tk 10 in the last four years till 2019.
According to the BSEC public issue rules, a company cannot have accumulative retained loss at the time of IPO application.
‘But it appears that the company’s EPS was continuously negative from 2016 to 2019 and NAV of the company was also negative in the same period, which is not in the line of the rules,’ the letter said.
AAA Finance & Investment Ltd, Trust Bank Investment Ltd and AB Investment Ltd are the issue manager of the company’s IPO.
Midway News Team
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