ABG Ltd becomes strategic partner of CSE

Published : 29 Sep 2022 08:47 PM

ABG Limited, a concern of Bashundhara Group, has become strategic partner of the Chittagong Stock Exchange (CSE) as Bangladesh Securities and Exchange Commission (BSEC) has given its approval on the proposal on Wednesday.

BSEC Executive Director Rezaul Karim, also spokesperson of the regulatory authority, confirmed the about the approval.

ABG Limited applied to buy 25 percent shares of the CSE as a strategic partner. BSEC approved the proposal on Wednesday, he confirmed.

Bashundhara Group’s Managing Director Sayem Sobhan Anvir is also the managing director of ABG Limited. The company is also trying to establish commodity exchange in the country with the CSE.

Earlier, the CSE sent Bashundhara’s proposal to the BSEC on 1 August this year for its approval.

ABG Limited is working in a joint venture with an America-based organisation for necessary technical support in managing the stock exchange, according to the sources.

According to the Demutualisation Act, there is an obligation to sell 60pc of blocked shares among strategic, institutional and general investors. Of those, 25pc of the stock exchange’s total shares will have to be sold to strategic investors.

After that, the remaining 35pc will have to be sold to general and institutional investors through the initial public offering (IPO) process.

On the other hand, 40pc of the shares are owned by members of the stock exchange or brokerage firms.

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 25pc of its shares to strategic investors – the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange.

The DSE sold 25pc of shares for Tk962 crore, with each share priced at Tk21.  

The CSE was established in 1995. Currently, its paid-up capital is Tk634.52 crore and the number of shares is 63.45 crore. It had paid a 4pc cash dividend to its shareholders for the financial year 2020-21.

As of June 30, last year, the CSE's net profit was Tk28.34 crore, which was Tk31.88 crore in the previous year.

At the same time, its earnings per share (EPS) were Tk0.45 and its net asset value per share was Tk11.75.