BSEC to probe Doreen’s share price hike

Staff Correspondent | Published: 22:48, Oct 30,2016

 
 

The Bangladesh Securities and Exchange Commission on Sunday formed a two-member inquiry committee to investigate the recent price hike and unusual trading of the shares of Doreen Power Generations and Distributions Company.
The capital market regulator formed the body at a commission meeting which was presided over by its chairman, M Khairul Hossain.
The committee comprising BSEC deputy directors Mustari Jahan and Mohammad Shamsur Rahman has been asked to submit its report within thirty working days.
‘The committee has been formed based on some initial observations on the recent trading pattern of the shares of Doreen Power Generations and Distributions Company,’ said BSEC executive director and spokesperson Md Saifur Rahman.
‘Although there were some valid reasons for the recent price hike, the BSEC surveillance system generated some alerts regarding the recent trading pattern of the entity’s shares. So the commission decided to dig into the issue,’ he said.
Before the announcement of the first quarterly earnings of the company, the price of Doreen Power shares was Tk 59.90 each on August 29 this year.
The price of Doreen Power shares, however, gradually increased by 106.51 per cent or Tk 63.80 to reach Tk 123.70 on Sunday as its first quarterly earnings per share jumped to Tk 2.22 from that of Tk 0.36 in the same period of the previous year.
Doreen Power recently said that its earnings increased because of the start of commercial operations of two subsidiary companies of Doreen Power.
The entity this year raised Tk 58 crore from the capital market floating its two crore shares at an issue price of Tk 29 each including a premium of Tk 19.
At Sunday’s meeting, the BSEC also approved the prospectus of a Tk 100-crore closed-end mutual fund, SEML IBBL Shariah Fund.
Of the target size of the fund, Islami Bank Bangladesh will provide Tk 50 crore as sponsor of the fund and Tk 25 crore has already been raised through a pre-initial public offering process, while the rest Tk 25 crore will be collected from general investors through an IPO.
Strategic Equity Management Limited will act as asset manager and Investment Corporation of Bangladesh as trustee and custodian of the fund. 

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