BSEC probes abnormal price hike of Associated Oxygen shares

Staff Correspondent | Published: 23:28, Nov 09,2020

 
 

The Bangladesh Securities and Exchange Commission on Monday formed a committee to investigate the abnormal rise in share prices of newly listed company Associated Oxygen Limited.

The regulator formed the two-member committee headed by its director Sheikh Mahbubur Rahman. The body was asked to submit its report within 15 working days.

Associated Oxygen made its debut on October 25 on the stock exchanges at Tk 10 a share. Share prices of the company shot up by the maximum limit allowed on the circuit breaker for 11 out of 12 trading sessions.

There was no circuit breaker in place for the company on November 5 and its share prices soared by 28 per cent on that day. The share prices of the company settled at Tk 60.7 each on Monday.

BSEC officials said that the commission suspected share price manipulation.

The BSEC on July 16 approved Associated Oxygen’s proposal to raise Tk 15 crore from the capital market through an initial public offering.

The newly listed company recommended only 2 per cent cash dividend to public shareholders other than sponsors and directors and 8 per cent stock dividend to all shareholders for the year ended on June 30, 2020.

The company reported EPS of Tk 1.87 for the year ended on June 30, 2020 as against Tk 1.51 for the same period of the previous year. 

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