Walton, Berger, ICB told to offload more shares

Bangladesh Securities and Exchange Commission (BSEC) has asked Walton Hi-Tech Industries, Berger Paints Bangladesh and Investment Corporation of Bangladesh (ICB) to offload more shares to meet the regulatory requirement.

As per Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015, a company has to offer shares at least equivalent to 10 per cent of its paid-up capital to be listed in the stock market.

According Dhaka Stock Exchange data, Walton Hi-Tech Industries offloaded only 0.97 per cent shares, while ICB floated 3.19 per cent and Berger Paint 5 per cent.

In separate letters to the managing directors of Walton, Berger and ICB, the stock market regulator directed them to offload more shares to meet the requirement.

These companies have to offload the required shares within a year starting from issuance of the BSEC letter.

However, these companies cannot offload more than 1 per cent shares in a month.

“As these companies have offloaded fewer shares than the regulatory requirement, we have taken this decision to force them to comply with the rules. It is also aimed at protecting the investors’ rights,” BSEC spokesperson and Executive Director Mohammad Reazul Karim told The Business Post.

Walton shares traded at Tk 1, 437.7 each, down by Tk 9.7 or 0.67 per cent. Share prices of ICB declined 0.63 per cent to Tk 142. On Sunday, Berger shares were traded at Tk 1,921 each. It gained by 3.17 per cent Tk 59 each.

Stock market analysts have said enhanced share offloading by the large capital and sound companies will add value to the capital market as well as improve supply of quality stocks .

It will encourage institutional investors and portfolio investors to pour in these companies.