Beximco Synthetics applies to regulator to buy back shares
The company plans to buy back its shares at face value of Tk10
Beximco Synthetics, which has been posting losses, applied to the securities regulator on Wednesday to buy back its shares from the general investors as it plans to exit from the capital market.
"The company has already applied to the commission to buy back its shares from the capital market at face value of Tk10," said Mohammad Rezaul Karim, executive director of Bangladesh Securities and Exchange Commission (BSEC).
"It will implement the plan after securing the commission's consent," he added.
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The general investors are holding 55,778,623 shares of Beximco Synthetics.
The company has not paid any dividends to its investors since 2012.
Trading the company's shares has been suspended in the stock market since 8 September last year.
Earlier the company said it has been losing its market due to a reduction in duty fees on the import of synthetic yarn. That is why it will not be able to continue the business.
Beximco Synthetics Limited was incorporated in Bangladesh in 1990. The company was listed on the capital market in 1993. It launched its manufacturing operation in 1994.
The sponsors and directors jointly hold 35.67%, institutions 24.09%, foreign investors 0.02%, and general investors 40.22% shares of the company.
