MI Cement listing deadlock likely to end by this week

Dhaka, April 25:The Securities and Exchange Commission is likely to issue a directive this week to the Dhaka and Chittagong bourses asking them to enlist MI Cements Ltd on condition that the company will compensate its shareholders from the directors' accounts if its shares are traded below the IPO issue price in the six months of its listing.

The SEC expressed its willingness to settle the listing deadlock the company has been facing in a meeting with the representatives of the company and the two bourses at the SEC boardroom on Sunday morning, commission sources said.

MI Cements chairman Jahangir Alam told New Age on Sunday, 'We will keep Tk 5 crore in reserve in a bank account to compensate the shareholders in case they lose money in share trading in six month of the company's listing.'

'We have also agreed to keep the directors' shares, which account for 70 per cent of the total shares, floated on the market under the custody of the DSE to realise funds for the investors' compensation claims if the fund to be kept reserved in a bank account for the purpose is found insufficient to cover losses,' he said.

A senior official of MI Cement said that the SEC, DSE and CSE agreed to the condition proposed by the company.

Source: New Age