The Bangladesh Securities and Exchange Commission on Tuesday formed an inquiry committee to look into the unusual price hike of the shares of newly listed BBS Cables Limited, an associate company of Bangladesh Building Systems Limited, another listed firm.
The three-member committee headed by BSEC deputy director Mohammad Shamsur Rahman has been asked to submit report on the issue within seven working days.
Against the backdrop of formation of the investigation committee by the BSEC to probe BBS Cables’ unusual price hike, the shares of Bangladesh Building Systems witnessed heavy purchasing on the day.
Due to investors’ heavy purchasing, the shares of BBS traded the most at the Dhaka Stock Exchange with its shares worth Tk 66.81 crore changing hands on the day.
Besides, the share prices of the scrip increased by 9.92 per cent to Tk 54.30 on Tuesday from Tk 49.20 in the previous trading session.
Stockbrokers said that abnormal hike in the share prices of BBS Cables, manufacturer and seller of electrical cables, wires, conductors in Bangladesh, since its debut on the stock exchanges on July 31 attracted investors to purchase shares of its associated company, Bangladesh Building Systems.
The share prices of BBS Cables which were issued at Tk 10 each through an initial public offering had increased to Tk 149.70 on Monday after closing at Tk 90 on the debut trading day.
The share prices of BBS Cables declined a bit to Tk 144 on Tuesday amid formation of the investigation
committee by the capital market regulators.
On April 13 this year, the BSEC approved a Tk 20-crore IPO of BBS Cables Limited.
As per the entity’s financial statements for the year ended on June 30, 2016, earnings per share and net asset value per share were Tk 2.46 and Tk 16.87 respectively.
BBS Cables’ IPO was oversubscribed by 47 times as investors had deposited Tk 960 crore against the offer size of Tk 20 crore.
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