The Bangladesh Securities and Exchange Commission has rejected Three Angle Marine Limited’s initial public offering proposal.
The company had applied to the regulator for allowing it to raise Tk 32 crore through an IPO under the fixed price method. The BSEC issued a letter to the company on February 28 regarding its decision, BSEC officials said.
They said that the IPO of the company was declined due to a loan defaulting issue.
The Dhaka Stock Exchange had also detected a number of irregularities in the IPO prospectus of Three Angle Marine.
The IPO panel of the bourse had found that the company did not invest in the listed companies, which was a condition of income tax ordinance for the company for enjoying five years of tax holiday.
The panel had observed that the asset of the company would take longer than its useful life to be fully depreciated as per the rate used in the financial reports.
Banco Finance and Investment and Janata Capital and Investment are the issue managers of the company.
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