The trading of shares of Ring Shine Textiles will likely to begin after the record date related with corporate disclosure to avoid possible conflict with securities rules as a recent BSEC directive has imposed circuit breaker on companies’ shares from the first trading day.
Dhaka Stock Exchange officials said that the BSEC verbally told the bourse to comply with new circuit breaker rules in the case of all companies including Ring Shine.
The new rules say that there will be circuit breaker from the first trading day of any company.
But, another securities rule says that there is no price limit on the trading of the shares of company on the day after corporate declaration.
Therefore, the bourse is waiting for the market regulator’s suggestion over the issue.
The bourse can start trading of Ring Shine after the record date that would allow the bourse to avoid violation of any rules, said officials of the Bangladesh Securities and Exchange Commission.
Ring Shine on November 21 declared 15 per cent stock dividend for the year ended on June 30, 2019 for the first time after six years, as per available information in its IPO prospectus. It set December 11 for record date.
The company has also reported earnings per share of Tk 1.72 for the year ended on June 30, 2019.
According to the rules, there should not be any price limit on its first trading day before record date for corporate declaration.
The company raised Tk 275 crore through issuance of placement shares from 2006 to 2012 and the shares were allotted in 2018.
The company raised Tk 150 crore through its initial public offering that made the post-IPO paid up capital Tk 435.05 crore.
The declaration of stock dividend again will add around 6.5 crore shares or Tk 65 crore with the existing paid up capital. The bonus shares that would be allotted to shareholders other than sponsor-director will be locked-in free.
The company is going to enter the capital market with whopping Tk 500 crore paid up capital.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks