Bourses asked to block Achia Sea Foods sponsors-directors' shares
The stock market regulator has asked both the Dhaka and Chattogram bourses to block shares owned by sponsors and directors of Achia Sea Foods Ltd on charges of providing misleading information about their shareholding position.
According to the Dhaka Stock Exchange and Chittagong Stock Exchange, the sponsors and directors held 30.69% of shares in June 2023, which rose to 46.60% after six months in December, even though there were no declarations for sale or purchase during that period.
On Monday, the Bangladesh Securities and Exchange Commission (BSEC) issued letters to the bourses to take action against the shrimp producer engaged in the frozen food processing industry for the deviation.
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Sources within the BSEC stated that the commission found the company provided misleading information to the stock exchange and the regulator. To protect the interests of general investors, the commission directed the immediate blocking of shares held by sponsors and directors.
Md Elias, company secretary of Achia Sea Foods, declined to comment on the matter, while Managing Director Md Tariqul Islam Zaheer did not answer his phone.
In a reply to the Dhaka bourse, the company said that due to misunderstanding and a lack of knowledge, they could not properly report the actual shareholding position of sponsors and directors to the stock exchange as required by the relevant rules, and they sincerely apologise for this, according to sources from the DSE.
They clarified that the shareholding position of sponsors and directors of the company remains unchanged at 30.69% to date without any fluctuations.
Earlier, in June 2022, the commission sought an explanation from Achia Sea Foods regarding its unusually high construction costs after receiving complaints.
Achia Sea Foods estimated the construction cost at Tk4,472 per square foot for a 27,023-square-foot, two-storey building at its factory premises in Labanchara, Khulna. The total cost amounted to Tk12.08 crore, which was deemed illogical by investors.
The fish processing plant is located on the ground floor, and the office is on the first floor of the building. The open roof of the building is also used for various types of freezing equipment.
Additionally, there is a tin-shed building along with a jetty ghat at the rear of the factory building.
In April 2022, the securities regulator approved Achia Sea Foods to raise Tk15 crore from the SME platform through a qualified investor offer (QIO) for loan repayment and machinery purchase.
Established in 1993, the company is engaged in processing and exporting high-quality seafood products—shrimps and fish—to foreign markets.
In FY23, its revenue reached Tk52.80 crore, up from Tk39.73 crore in the previous year. Its profit after tax increased to Tk3.76 crore from Tk2.24 crore in FY22. The earnings per share stood at Tk1.01, and the net asset value per share was Tk25.57 as of June 2023.
Shares closed 0.31% lower at Tk32.20 on the DSE on Tuesday.
As of December 2023, sponsors and directors retain a 30.69% stake, institutions hold 14.53%, and general shareholders possess 54.78% of the company's shares.
