The bank informed there is no undisclosed price sensitive information for the recent unusual price hike
IFIC Bank’s stock price is soaring for no good reason.
Since June 8, its share price soared 91.9 per cent to Tk 16.50, which prompted the Dhaka Stock Exchange to serve a show-cause notice on the company.
The bank informed that there is no undisclosed price sensitive information for the recent unusual price hike.
And yet, there has been a flurry of transactions with its shares, landing the company a spot in the top traded chart on most days.
Recently, the Bangladesh Securities and Exchange Commission (BSEC) has cancelled the right offer proposal of the bank due to its inability to appoint an underwriter.
A rights issue is an invitation to existing shareholders to buy more shares at rates discounted or lower than the market price.
IFIC had been struggling with its fresh right issue plan as the previously bearish market had kept share prices of the company below the face value of Tk 10, which the bank did not anticipate.
In May 2019, the bank's board of directors had decided to issue a right share for every existing share at an offer price of Tk 10 each to raise paid-up capital and meet future capital requirement.
Later in August that year, they revised the ratio to issue one rights share for existing four shares instead.
On July 30, the company revised the plan for the third time, reducing the ratio of right shares to every five shares.
After the shareholders approved, the bank applied to the BSEC for right offer approval.