The DSE, earlier on May 21, rejected the listing application of Coppertech saying that the company's financial statement did not qualify for listing
The controversial Coppertech Industries Limited is set to make its debut in the country’s two burses on Monday, although the Dhaka Stock Exchange (DSE) earlier refused to list the company due to its irregularities and fabricated financial reporting.
The DSE, earlier on May 21, rejected the listing application of Coppertech saying that the company's financial statement did not qualify for listing, multiple sources at the DSE say.
Before the rejection, DSE senior officials had found gross irregularities in the auditor’s report of Coppertech, and their paid-up capital, sources confirmed.
The DSE also sought securities regulator’s direction on the entire issue of the company in question.
The Bangladesh Securities and Exchange Commission in December, last year approved the company’s IPO proposal for raising a capital of Tk20 crore under the fixed-price method.
On July 22, however, the DSE board decided to approve the listing of the company without making any further query about the matter, surprising many at the DSE.
It is alleged that influential quarters within the government and the private sectors played a vital role in the approval process of the BSEC, and subsequent soft stance of DSE on Coppertech Industries Limited.
According to the securities rules, listing of a company must be completed within 30 days of its initial public offering subscription.
The deadline for the listing of Coppertech Industries expired on June 23.
The company will utilize the Initial Public Offering (IPO) proceeds to purchase machinery, repay bank loans, construct buildings and bear the IPO expenses. MTB Capital is working as the issue manager of the IPO.
As per the financial statement for the year ended on June 30, 2018, the company's net asset value (NAV) per share—without revaluation—stood at Tk12.06. For the same period, the earnings per share (EPS) of the Coppertech Industries stood at Tk2.60, whereas the diluted EPS was Tk1.03. The weighted average EPS stood at Tk0.87.
Located in Habiganj, the company commenced commercial operations in June 2014, and produces copper bars, copper rods, copper strips, copper wire, copper pipes, and copper tubes.