Walton Hi-Tech Industries Ltd got three years to offload more of its sponsor-held shares to ensure at least 10% free-float shares.
The Bangladesh Securities and Exchange Commission (BSEC) has recently approved the company s proposal, where it sought time for up to three years. Currently, the company has only 0.97% free-float shares.
Free-float shares are listed company shares held by external shareholders who do not need any prior declaration before trading company stocks.
Walton in a letter to the BSEC last month sought an opportunity to offload further sponsor shares in phases within an extended period of three years to avert any adverse impact on its stock price.
The BSEC, on 12 September last year, ordered Walton Hi-Tech Industries, Berger Paints Bangladesh Ltd, and the Investment Corporation of Bangladesh (ICB) to ensure a minimum of 10% free-float shares within a year through offloading sponsor-held shares.