Sponsors, directors of Asiatic Lab barred from selling shares
The regulatory authority has issued new directives regarding the ‘lock-in’ period for shares held by the entrepreneur, directors, and placement shareholders (183 individuals/entities mentioned in the prospectus) of Asiatic Laboratories Limited, a publicly listed pharmaceutical company. This instruction has been given due to the company's failure to properly utilise funds raised from the capital market through its Initial Public Offering (IPO).
The decision was made at a commission meeting held on Tuesday, 17th February, chaired by Khondkar Rashed Maksood, Chairman of the BSEC. The BSEC has taken this decision considering the recommendations of the Dhaka Stock Exchange (DSE) inspection report, the current market situation, and the interests of general investors.
According to the decision of the Bangladesh Securities and Exchange Commission (BSEC), no shares of the company can be sold until 3 years from the existing lock-in release date or until the completion of the proposed 32-story building's construction and commencement of commercial use (including RAJUK's occupancy certificate), whichever is later.
The BSEC stated that the 837th Commission meeting held on 31st August 2022, approved the proposal to raise Tk 95 crore through the Initial Public Offering of Asiatic Laboratories Limited.
The company's prospectus stated that it would use the Tk 95 crore raised through this IPO for business expansion (purchase and installation of machinery), factory building construction, repayment of bank loans, and issue management expenses. However, the BSEC has reported that the company has not yet completed the utilisation of funds raised through the IPO, or the IPO fund.
The regulatory body stated that without completing the utilisation of the IPO fund, the company disclosed price-sensitive information on 28th September 2015, regarding an ambitious plan to construct a 32-story building, without project evaluation, feasibility study, regulatory approval (building plan approval by RAJUK, environmental clearance, etc.), and without prior experience or expertise.
The Bangladesh Securities and Exchange Commission (BSEC) stated that the construction of a 32-storey building and engagement in real estate/hotel businesses are not consistent with the company's Memorandum of Association. The Dhaka Stock Exchange (DSE) conducted an inspection on this matter, and the BSEC reported that the aforementioned inconsistencies were revealed in the inspection report.
Furthermore, a decision was taken at a commission meeting to approve the draft of the 'Bangladesh Securities and Exchange Commission (Disclosure of Capital Market Related Information and Protection of Informants) Regulations, 2026'. The approved draft will be published in national daily newspapers and on the Commission's official website for public consultation.
DBTECH/SMEH/EK
