No more substandard IPOs are listed on the capital market.

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No more substandard IPOs are listed on the capital market.

The commission headed by Khandkar Rashid Maqsood wants to bring companies like Unilever to the stock market. For this, many large companies of the country have met with the authorities. As a result, the IPO application of all the companies previously has been cancelled. However, no company like Unilever has shown interest in coming to the stock market yet. That is why the Bangladesh Securities and Exchange Commission (BSEC) has no IPO file.

A top official of a merchant bank told to press that all commissions dream a lot in the beginning. One of them is to bring all the best companies of the country to the stock market. But finally nothing happens. Because those companies do not need money. Companies that need money should be given the opportunity to come to the stock market. But BSEC is going the opposite way in the market. Another merchant banker told to media that Khandkar Rashed Maqsood has decided not to give an IPO to the stock market without a company like Unilever. That is why they have canceled all the previous IPO applications.

In continuation of this, BSEC has also rejected the IPO application of a large company like Borak Real Estate Limited.

The commission has rejected the IPO application of the company, claiming that there are inconsistencies in the financial reports of the company submitted with the IPO application, citing the power of Rule 15(5) of the Bangladesh Securities and Exchange Commission (Public Issues) Rules, 2015.

It has been learned from BSEC that a letter in this regard has been sent to the Chief Executive Officer (CEO) of Borak Real Estate Limited recently.

At the same time, the issue manager BMSL Investment Limited and the Managing Director of Swadesh Investment Limited, who are in charge of the company’s IPO, have been informed of the matter. The BSEC said in the letter that several inconsistencies were found after verifying the company’s IPO application, draft prospectus, information, sensitive information, DSE’s observations and other relevant documents and explanations submitted at different times.

It is learned that the company has reported the value of its investment assets in housing as Tk 700 crore 20 lakh. Along with this, the profit after tax as of June 30, 2023 was Tk 652 crore 49 lakh.

Regarding the net asset value, it has been said that the company’s net asset value per share was Tk 81.37 as of June 30, 2022. Which increased to Tk 148.54 as of June 30, 2023.

When asked about this, Md. Riyad Matin, Managing Director (MD) and Chief Executive Officer (CEO) of BMSL Investment, the issue manager of Borak Real Estate Limited, said, BSEC has given queries on some issues. BSEC has asked to fix them and re-apply. We are working to fix the issues after discussing with the company.

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