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The stock market regulator has asked the bourses to suspend the share trading of Beximco Synthetics from Tuesday (September 8) as the company applied for delisting from the stock market.
Bangladesh Securities and Exchange Commission (BSEC) ordered the bourses on Monday as Beximco Synthetics, a polyester filament yarn manufacturer, recently applied for delisting from the stock market, said an official of the BSEC, preferring seeking anonymity.
The company got listed with the bourses by offloading shares in 1993 and commenced commercial operation in July 1994.
Beximco Synthetics decided to exit the market as it had been incurring losses for years and realised that the sector was not profitable, said the BSEC official.
The official said the company can now buy back its shares so that general investors don’t face any trouble, adding the process of delisting without hampering general investors was yet to be settled.
According to its latest financial statements, Beximco Synthetics incurred loss of Tk 299.6 million in fiscal year (FY) 2018-19 which was Tk 270.6 million in the previous year.
Beximco Synthetics disbursed 10 per cent stock dividend in eight years back in 2012.
Beximco Synthetics was among the 15 companies which are being reviewed by the Dhaka Stock Exchange as they have been incurring losses for more than five years.
Smooth business operation was hampered in 2018-19 due to unavoidable circumstances like continuous decrease of demand as well as the price of polyester filament yarn in the local market, said ASF Rahman, chairman of the company, in its annual report for the FY 2018-19.
“We are worried about the future of this business in Bangladesh,” he said.
Each share of the company closed at Tk 8.50 on Monday. Its share traded between Tk 2.90 and Tk 10.60 in the last one year.
The company’s paid-up capital is Tk 867.12 million and authorised capital is Tk 2.0 billion while the total number of securities is 86.71 million.
The sponsor-directors own 35.67 per cent stake in the company, while the institutional investors own 17.93 per cent, foreign investors 0.02 per cent and the general public 46.38 per cent as on July 31, 2020, the DSE data shows.
In July 2018, the bourses also delisted Modern Dyeing & Screen Printing and Rahima Food Corporation as the companies remained closed for more than three years.