The stock market regulator Bangladesh Securities and Exchange Commission (BSEC) has ordered the two bourses today to suspend the share trading of Beximco Synthetics from tomorrow.
The company got listed with the bourses by offloading shares in 1993 and commenced commercial operation in July 1994.
As it decided to exit the market as it had been incurring losses for many years and realised that the sector was profitable, said a top official of the BSEC preferring anonymity.
The official said the company can now buy back its shares so that general investors don’t face any problem, adding the process of delisting without hampering general investors was yet to be settled.
The company incurred loss of Tk 29.96 crore in 2018-19 which was Tk 27.06 crore in the previous year.
It provided dividend in 2012 last when it disbursed 10 percent stock dividend.
Smooth business operation was hampered in 2018-19 once again 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 year 2018-19.
“We are worried about the future of this business in Bangladesh,” he said.
The company’s paid-up capital was Tk 86 crore, so the number of shares are 8.67 crore.
Of the shares, 35.67 percent are held by the company’s sponsors. Institutional investors hold 17.93 percent and the remaining 46.4 percent stocks are held by general investors.
Stock of the synthetic company was traded at Tk 8.50 yesterday, according to the DSE.
It was among the 15 companies which are being reviewed by the DSE as they have been incurring losses for more than five years.