Banco Securities banned from Robi’s IPO subscription

Staff Correspondent | Published: 23:29, Nov 16,2020


The Bangladesh Securities and Exchange Commission on Monday barred Banco Securities Limited from subscribing to initial public offering of Robi Axiata Limited as the brokerage house was found involved in trading of Robi shares before subscription.

The subscription of Robi’s Tk 523.79-crore IPO will begin today.

BSEC officials said that the regulator issued a letter to the brokerage house on the day and asked it to stay away from Robi’s IPO shares.

According to the Dhaka Stock Exchange, the subscription of shares of Robi Axiata by eligible investors through the electronic subscription system under the fixed price method of the IPO will start today.

BSEC executive director and spokesperson Rezaul Karim told New Age that Banco Securities made agreements with a number of investors that it would sell Robi’s IPO shares to them after receiving those as an eligible investor.

So, the regulator has barred the securities house from making any application for IPO shares of Robi, he said.

Robi will float 52.37 crore shares at an issue price of Tk 10 each. Of the shares, 38.77 crore shares would be issued to retail and institutional investors and 13.61 crore shares would be issued to eligible directors and employees of Robi under the employee share purchase plan in conjunction with the proposed listing.

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