It has noticed the unbelievably huge gap between prices offered by the highest and the lowest bidders
Bangladesh Securities and Exchange Commission (BSEC) has summoned the top five bidders among the eligible investors to know the analysis method of their bidding.
The commission on Sunday issued a letter to the top five bidders seeking explanation in this regard, said sources.
These eligible investors took part in bidding from Walton Hi-Tech Industries Ltd.
Meanwhile, the five companies have completed their bidding process. Four of them are Walton Hi-Tech Industries Ltd, Mir Akhter Hossain Ltd, Lub-rref (Bangladesh) Ltd and Index Agro Industries Ltd.
But regarding Energypac Power Generation Ltd, the commission has sought explanations about investors who bid above Tk60 as per the directive.
Sources said the commission had noticed the unbelievably huge gap between prices offered by the highest and the lowest bidders.
But every eligible investor took part in those companies' bidding to analyse their financial statements, business policy, future growth, management governance and overall condition of the companies, added sources.
Sources also said the commission wants to know why there is such a huge gap between the prices.
The commission also wants to know the logic behind the pricings, sources said, adding if any irregularity is found, the commission will take regulatory action.
As per the regulator's directive, the eligible investors have to form a bidding recommendation committee comprising at least two members having relevant knowledge, skill, qualification and experience.
The committee, after detailed analysis of value and prospects of the securities, has to recommend participating in the electronic bidding and also mention the bidding quantity and price.
While analysing, they have to take into consideration all aspects, including financial, technical, managerial, commercial, economic and ownership.
Besides, they have to use international securities valuation techniques to make decisions on objective and professional judgments.
The cut-off price of Walton Hi-Tech Industries' shares had been set at Tk315 through electronic bidding. But prices of the highest and the lowest bidders were Tk765 and Tk12 respectively.
After that, the cut-off price of Mir Akhter Hossain's shares was determined at Tk60, but the highest and the lowest bidders offered Tk98 and Tk14 respectively.
It is alleged that the eligible investors manipulate bidding prices in connivance with the management.