The Bangladesh Securities and Exchange Commission (BSEC) has barred top five bidders from participating as eligible investors in the next three initial public offerings under the book-building method for their aggressive pricing.
The stock market regulator on Sunday issued letters to the five institutional investors in this regard. Their names could not confirmed at the time of filing the report.
Earlier, BSEC had asked for explanations from the top five bidders who took part in the initial public offerings of Walton Hi-Tech Industries and Mir Akhter Hossain in this regard.
This comes after the regulator recently barred MTB Securities from participating as an eligible investor in the next three IPOs for violating rules during the IPO application process.
During Walton Hi-Tech’s book-building session earlier this year, eligible investors had bid as low as Tk 12 for a stock of the electronics manufacturer that logged in profits of Tk 1,376 crore in its last financial year, while some placed bids as high as Tk 765, according to the Electronic Subscription System for EIs.
Such outsize deviation in the amount eligible investors were willing to pay for a stock was never seen before.
Mir Akhter’s book-building session was wrapped up last month. The cut-off price for its share was set at Tk 60.
The construction and engineering company wants to raise Tk 125 crore from the public for business expansion.
