Buyers dump Rupali on DSE
Monday, 21 July 2008

Bdnews24.com

No shares of Rupali Bank changed hands on Dhaka Stock Exchange on its first day of trade Sunday after a nine-month closure.

Trading was halted by the bourse authorities on Nov 6 last year as the scrip became overpriced on news of the Saudi prince's bid to buy the bank.
 
Rupali shares last traded at Tk 2,904 on the prime bourse.
 
But the bank's 30 shares worth Tk 76,327.50 traded on Chittagong Stock Exchange. It closed at Tk 2544.25, down from Tk 2826.75, the price on the last trade day on CSE.
 
In 2003, the government decided to sell its stakes of Rupali Bank and handed the job to the Privatisation Commission.
 
The commission invited bids to sell the bank's government shares in 2006. Saudi Prince Bandar Bin Mohammad Bin Abdul Rahman Al Saud won the purchase bid for a 67.26 percent stake in Rupali for $330 million in 2006.
 
But later the prince offered to buy another 26 percent government stake for $128 million. Private investors hold a 6 percent stake in the bank.
 
The government agreed to sell its 26 percent stake to the prince, which means the prince was meant to take a 94 percent stake of the bank for $458 million.
 
The news led Rupali shares to rise above Tk 3,200 from Tk 450 in a year. On Nov 6, the bourse authorities and the capital market regulator decided to halt trading of Rupali shares.
 
The cabinet committee for economic affairs cancelled the selling process on Mar 10 after long dithering of the Saudi Prince to close the deal.

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