CSE gets one more year to find strategic investors
It now has until March 8, 2021, for finalising a strategic partner
The Bangladesh Securities and Exchange Commission (BSEC) has recently extended the time for the Chittagong Stock Exchange (CSE) by another year to look for strategic investors.
The CSE now has until March 8, 2021, for finalising a strategic partner.
Mamun-Ur-Rashid, managing director of the CSE, told The Business Standard they had sent proposals to many stock exchanges and institutions for being strategic investors.
"But due to the Covid-19 pandemic, we did not hold a formal meeting in this regard," he said.
The CSE managing director said many stock exchanges and institutions had shown interest in being strategic partners.
"They sought more information about the CSE. We have already sent that and the process is going on," he added.
According to the demutualisation act 2013, there is an obligation to sell 60 percent of blocked shares among strategic, institutional and general investors.
Of those, 25 percent of the stock exchange's total shares will have to be sold to strategic investors.
After that, the remaining 35 percent will have to be sold to general and institutional investors through the initial public offering process.
On the other hand, 40 percent of the shares are owned by members of the stock exchange or brokerage firm.
As per the demutualisation act, the CSE was supposed to sell 25 percent of shares to strategic investors, but failed to finalise the process.
Since 2016, the regulator has been extending the time to look for strategic investors every year based on the company's applications.
Earlier, in September 2018, the Dhaka Stock Exchange (DSE) transferred its 25 percent of shares to strategic investors – Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange.
It sold the 25 percent of shares for Tk962 crore, with each share priced at Tk21.
As of June 30 last year, the CSE's net profit was Tk39.07 crore, which was Tk34.75 crore in the previous year.
At the same time, its earnings per share was Tk0.62 and net asset value per share was Tk11.80.
The Bangladesh Securities and Exchange Commission (BSEC) has recently extended the time for the Chittagong Stock Exchange (CSE) by another year to look for strategic investors.
The CSE now has until March 8, 2021, for finalising a strategic partner.
Mamun-Ur-Rashid, managing director of the CSE, told The Business Standard they had sent proposals to many stock exchanges and institutions for being strategic investors.
"But due to the Covid-19 pandemic, we did not hold a formal meeting in this regard," he said.
The CSE managing director said many stock exchanges and institutions had shown interest in being strategic partners.
"They sought more information about the CSE. We have already sent that and the process is going on," he added.
According to the demutualisation act 2013, there is an obligation to sell 60 percent of blocked shares among strategic, institutional and general investors.
Of those, 25 percent of the stock exchange's total shares will have to be sold to strategic investors.
After that, the remaining 35 percent will have to be sold to general and institutional investors through the initial public offering process.
On the other hand, 40 percent of the shares are owned by members of the stock exchange or brokerage firm.
As per the demutualisation act, the CSE was supposed to sell 25 percent of shares to strategic investors, but failed to finalise the process.
Since 2016, the regulator has been extending the time to look for strategic investors every year based on the company's applications.
Earlier, in September 2018, the Dhaka Stock Exchange (DSE) transferred its 25 percent of shares to strategic investors – Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange.
It sold the 25 percent of shares for Tk962 crore, with each share priced at Tk21.
As of June 30 last year, the CSE's net profit was Tk39.07 crore, which was Tk34.75 crore in the previous year.
At the same time, its earnings per share was Tk0.62 and net asset value per share was Tk11.80.