No ownership transfer plan, yet Mithun Knitting shares surge

Despite its factory remaining closed since 2019 and all business operations being halted, the share price of listed Mithun Knitting and Dyeing (CEPZ) Ltd has surged in recent trading sessions.

The company, however, has told the Dhaka Stock Exchange (DSE) that there is currently no ongoing or approved plan to transfer shares held by its sponsors or directors to any new investor.

The stock gained 20% in two trading sessions, closing at Tk15.70 on the DSE today (20 August).

The DSE sought an explanation from the company on 17 August over the unusual rise in its share price and trading volume. In response, Mithun Knitting said it was unaware of any undisclosed price-sensitive information (PSI), significant corporate decision or other material event that could explain the movement.

The company said its sponsors and directors had previously explored transferring their shares to potential investors, but the process could not be completed because of unresolved bank liabilities and related issues.

It subsequently applied to the Bangladesh Securities and Exchange Commission (BSEC) on 1 September 2025 to keep the relevant share-transfer application in abeyance.

Mithun Knitting told the DSE that no sponsor or director share-transfer plan is currently under consideration or has been approved. It also said there was no material corporate action or undisclosed information that could reasonably explain the recent increase in the stock's price and trading volume.

The company's ownership-transfer efforts had previously drawn market attention. In 2024, Chinese company Destination Express International (DEX-I) Ltd sought to acquire shares held by Mithun Knitting's sponsors, and the BSEC initially approved the proposal.

Under the deal, 5.45 million shares held by the heirs of deceased entrepreneur Mozammel Haque and others were to be transferred to DEX-I.

The transfer was not completed because of complications involving bank liabilities and other unresolved issues. DEX-I later reapplied, but the BSEC rejected the proposal over inadequate documentation and missing information in the memorandum of understanding.

Meanwhile, Mithun Knitting's factory has remained closed since 2019, with its business and operational activities completely halted.