Mir Akhter’s share price declines after suspected price manipulation attempt

The share price of Mir Akhter Hossain Ltd has decreased by 9.98% on Thursday after the securities regulator formed an inspection team to investigate if someone was trying to manipulate the company's share price.

Mir Akhter Hossain Ltd, one of the country's largest construction and engineering firms, started trading shares at the stock exchanges on 2 February this year. 

On Thursday it traded 10.21 lakh shares for Tk9.36 crore in the Dhaka Stock Exchange, but it had no buyer by the end of the session as the news of a suspected attempt to manipulate its share price hit the market. 

On Thursday, the share transaction of the company opened at Tk100.2 per share, and closed at Tk90.2.  

Earlier, on Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) formed an inspection team to check if two beneficiary owner (BO) accounts of the IDLC Securities tried to manipulate the company's share price.   

Mohammad Rezaul Karim, executive director and spokesperson of the BSEC, said, "The commission noticed that two investors of the IDLC Securities had bid the highest possible rate for a large number of shares of Mir Akhter."

"The two BO accounts were not able to execute trading as they were compelled to withdraw buying orders. The commission suspended BO accounts instantly and formed an inspection team," he added.

The company's initial public offering (IPO) lottery was held on 21 January 2021 to allocate its shares to general investors.

On 5 November last year, the regulator gave its approval to the company to raise Tk125 crore through an IPO under the book-building method.

The company says it will use the money for expanding business, purchasing equipment and repaying bank loans.

The cut-off price of the shares was fixed at Tk60 each after the bidding. General investors will get a 10% discount on the cut-off price to buy it at Tk54. IDLC Investments is the company's issue manager.

In the fiscal year 2018-19, Mir Akhter's total revenue was Tk426.70 crore and the net profit was Tk63.24 crore. In the fiscal year 2017-18, the company's profit stood at Tk61.87 crore.

According to the audited financial statements of Mir Akhter, as of 30 June 2019, the company's weighted average earnings per share in the last five years was Tk6.21, and net asset value per share was Tk34.71, including re-evaluated reserves.

Established in 1968, Mir Akhter Hossain Ltd implements infrastructure development projects across the country. These projects include the construction of roads, bridges, highways, railroads, five-star hotels, power plants, and factories.