- IPO subscription was suspended since 15 Jan 2023
- Due to allegations of
- False land ownership
- Inaccurate financials
- Fraudulent reports of share money deposits
- Directors and issue manager were fined
- Now, subscription to resume soon
The securities regulator has finally given its go ahead to the initial public offering (IPO) subscription of Asiatic Laboratories, which was held up for almost a year.
In January this year, the Bangladesh Securities and Exchange Commission (BSEC) suspended the company’s IPO subscription over allegations of false land ownership, inaccurate financials and fraudulent reports of share money deposits.
The commission then formed a probe committee to investigate the matters, and the committee uncovered false documents related to land ownership, inaccurate financial statements, and fraudulent reports of share money deposits submitted by Asiatic Laboratories.
Due to violations of securities laws and proven allegations, the BSEC last month imposed a fine of Tk50 lakh on each of its directors and the issue manager.
Additionally, Managing Director Monir Ahmed, chief financial officer, and company secretary of Asiatic Laboratories, in their roles as signatories in the prospectus, each faced fines of Tk25 lakh.
This means that the managing director faced a total fine of Tk75 lakh for his involvement in both segments of the process.
The issue manager, Shahjalal Equity Management, was also fined Tk50 lakh for its false due diligence in the company.
Finally, in a meeting held on Tuesday, the commission decided to withdraw the suspension on Asiatic’s IPO subscription, which is now expected to resume soon.
In September last year, the BSEC allowed Asiatic Laboratories to raise Tk95 crore through an IPO under the book-building method.
This involved electronic subscriptions by eligible investors to determine the cut-off price of shares. The cut-off price for each share was determined at Tk50, but general shareholders will get a discounted price of Tk20 each.
Source: The Business Standard
