The development comes after its foreign partner Fortis Healthcare requested the securities regulator for cancellation of the IPO
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday suspended the initial public offering (IPO) of AFC Health until further notice forfurnishing misleading information in its prospectus.
BSEC Spokesperson Mohammad Rezaul Karim confirmed the matter to Dhaka Tribune.
The development comes after its foreign partner Fortis Healthcare requested the securities regulator for cancellation of the IPO as AFC Health provided false information and misused the leading Indian healthcare provider’s trade name without consent to secure approval for the listing.
“This was done with the dishonest intent to misuse its affiliation with the Fortis Escorts Heart Institute and Fortis Healthstaff to mislead the general investors of Bangladesh,” said the letter dated October 13.
AFC Health, which runs cardiac care facilities in Cumilla, Khulna and Chattogram, received approval from the BSEC on September 16 to raise Tk 17 crore by issuing 3 crore ordinary shares at Tk 10 each to buy equipment.
In its IPO prospectus, AFC Health had said that Fortis would provide operation and management services for all of the cardiac centres as per an agreement signed on February 4, 2015, in New Delhi between the two companies.
Fortis opposed the statement and said it was supposed to cover only AFC's centres in Khulna and Chattogram regions and not elsewhere.
“We ask that the commission should take appropriate action against AFC Health for making false, incorrect and misleading statements in a document inviting funds and investments from the general public,” the letter added.
Subsequently, the BSEC has put the IPO on hold until further notice.
Imperial Capital and CAPM Advisory are the issue managers for the IPO process.