DSE halts trade of Shahjibazar for unusual price hike

The Dhaka Stock Exchange management yesterday suspended trading of Shahjibazar Power Company shares indefinitely owing to unusual price hike of the newly-listed firm.

“Pursuant to BSEC's investigation and recent unusual price movement of the company, the DSE, in the greater interest of investors and the capital market, has decided to suspend the trading of Shahjibazar Power with effect from today [yesterday] until further decision,” the bourse said in a web posting.

The premier bourse also enquired the power generation company if there was any undisclosed price-sensitive information behind the unusual hike since the listing on July 15, to which the company answered in the negative.

Earlier on July 31, the Bangladesh Securities and Exchange Commission formed a two-member probe panel after the company's share price soared 61 percent to Tk 58.7 in just nine trading sessions.

But the shares rallied for the next five trading days too, bringing about a 38 percent rise.

Each share of Shahjibazar Power closed at Tk 89.2 on Sunday on the premier bourse.

Market insiders said the lower free float ratio of the company's shares could be a major factor behind the continuous rise in prices, even after the regulatory probe.

Lower free float ratio means that there is lesser quantity of tradable shares in the market.

Only 1.26 crore of the 12.68 crore Shahjibazar Power shares are free floating or tradable.

Located in Habiganj, Shahjibazar Power raised Tk 31.7 crore through initial public offering, which was approved by the BSEC in January. The company floated 1.26 crore ordinary shares of Tk 10 each at an offer price of Tk 25, including Tk 15 as premium.