Regulator directs bourses to list MI Cement, Bangladesh

Regulator directs bourses to list MI Cement, Bangladesh
Published: 27 April 2011

The stock market regulator yesterday directed twin bourses to list MI Cement Factory Ltd on their trading boards, a move that ends a stalemate over the listing of the cement maker.

The Securities and Exchange Commission issued a circular after a meeting on the MI Cement issue, said an SEC official.

“The bourses will have to list MI Cement immediately after fulfilment of the conditions that the company proposed, and agreed by the regulator as well as the bourses,” the official said.

Earlier, MI Cement proposed that sponsor directors will compensate the investors if share prices go below the offer price within the first six months of trade. The company will deposit Tk 5 crore in security funds to fulfill the compensation package before receiving the listing approval from the bourses.

Also, the company will set aside a fourth of total shares from the directors’ portion for the bourses. If the compensation amount crosses Tk 5 crore, the exchanges could go for selling those shares.