The securities regulator Sunday postponed the initial public offering (IPO) subscription of Simtex Industries due to 'unavoidable circumstances', officials said.
In this regard the securities regulator issued a directive through a letter sent to the Issuer company and issue managers.
The subscription of Simtex Industries was scheduled to begin today (Monday) to raise a fund worth Tk 600 million from the public.
The securities regulator - Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Simtex Industries on June 9 last.
Both the bourses - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE)-have also got the copy of the letter regarding the suspension of public subscription.
DSE managing director Prof. Dr. Swapan Kumar Bala and BSEC Executive Director Mohammad Saifur Rahman acknowledged the regulatory decision on postponement of IPO subscription.
According to BSEC letter, the company's public subscription has been postponed 'due to unavoidable' circumstances.
"The company will have to make disclosure on regulatory decision on suspension of IPO subscription through four news papers, two Benguli and two English. New schedule of the subscription will be notified later," the BSEC letter said.
When asked, a senior BSEC official said the regulator has sought a clarification from the company.
"One of the disclosures made in IPO proposal was not clear to the regulator. That's why the BSEC has sought a clarification from the company. The company's subscription will start soon if the clarification is satisfactory to us," the BSEC official said.
Recently, the regulator also postponed the public subscription of Bangladesh National Insurance (BNI) following a letter of the Insurance Development and Regulatory Authority (IDRA).
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