Government on Tuesday completed offloading of 10 per cent additional shares of Dhaka Electric Supply Company held by the state-owned Bangladesh Power Development Board raising around Tk 144.35 crore from the capital market.
Market sources told New Age on Tuesday that the offloading of DESCO shares at the capital market — through Dhaka and Chittagong stock exchanges — has been completed successfully at a satisfactory rate.
As demand of DESCO shares had increased significantly in last couple of trading sessions due to the recent bullish market vibe that allowed completing the process before the stipulated timeframe, they said.
Due to the sudden rise of DESCO share price in last two trading sessions, of the total 2.93 crore shares, 2.41 crore shares were offloaded in just two trading sessions on Monday and Tuesday.
Market sources also said that the DESCO shares were offloaded at an average Tk 49.25 per share, while Tuesday’s average rate was 51.62, excluding brokerage commission.
Stock exchange sources said that the majority of the DESCO shares were purchased by a number of companies as they took fresh offloading process as an opportunity to avail bulk amount of the SoE shares.
Due to heavy buying by the companies the DESCO share prices hit the upper limit of the price hike on Tuesday on both Dhaka and Chittagong stock exchanges.
On December 18, 2016 Bangladesh Power Development Board, one of the corporate sponsors of Dhaka Electric Supply Company, announced that it would offload another 10 per cent or 2.93 crore shares of DESCO out of its total holdings in the entity.
The government’s fresh move to resume offloading of SoE shares on the country’s stock market came following finance minister AMA Muhith’s recent announcement to restart stalled divestment process of the state-owned companies.
DESCO, a Tk 397.56-crore entity, was enlisted with the stock exchanges floating its 25 per cent shares.
Before the fresh offloading, 73.72 per cent or 29,31,04,259 shares out of DESCO’s 39,75,69,804 shares were held by BPDB, while institutional investors’ holding was 17.69 per cent, foreign investors’ 0.57 per cent and retail investors’ 6.74 per cent.
The government’s instruction was to float shares within June 30, 2016. The process delayed due to stagnant market movement. The initiative got momentum following the bullish market trend since November, 2016.
Apart from DESCO, offloading process of more shares of state-owned entities got momentum in 2005 when the government selected 26 SoEs and private companies in which the government owns shares, including Unilever and Aventis, for offloading certain portion of the shares on the market.
A portion of shares of some other state-owned companies including Titas, Jamuna Oil, Eastern Lubricants, Bangladesh Shipping Corporation and Rupali Bank have already been offloaded on the share market.
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