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BXP's share price in Dhaka today up 1.45% to Taka 196.6 (at this moment) It is cleare to me from the frequent rises off late in Dhaka (as reported by me) that the Bangladesh-based investors see the future bright for Beximco. I wholly agree.
BXP's Share price in Dhaka up 1.45% today (at this moment). It is clear to me from the frequent rises off late in Dhaka (as reported by me) that investors in Bangladesh see the future bright for Beximco. I wholly agree.
Dhaka Exchange closing price today up 1.99% to Taka 194.40, which translates into 165 pence.
Today's closing price in the Dhaka exchange: Taka 190.6 (up Taka 3.1 = 1.65%)
I need to stay that I typed an error in my message of last Thursday. I wrote 198.8 Taka instead of 189.8 Taka,
the London price of put at 160.9 is correct (unchanged).
Sorry about that.
I am not particularly worried about the market cap differentials, I am happy at having the same dividend rights on my currently 50% discounted GDR shares here as the Bangladesh shareholders have on their Dhaka exchange traded shares at full price. The huge discount is unwarranted and won't last forever - a buy-opportunity if ever there was, IMO. But as always don't take my word for it, DYOR or speak to your adviser.
The market cap discrepancy seems to simply reflect the share price / gdr price discrepancy and I’d guess neither is correct.
In the Uk people are multiplying the total shares by the uk price. Wrong as only 20% or so of shares are traded here in the form of gdr’s. In Bangladesh the calculation will be based on their exchange price which is again wrong as they have only 80%.
The shares linked to the uk gdr’s are not tradable on their exchange so I think the correct market cap calc should be (uk no. X uk price) + (Bangladesh no. X Bangladesh price). We will ignore a minor discrepancy as the price of the shares on the two different Bangladesh exchanges is slightly different !
Winnings,
I’ve had a look and on the other index and the market cap of Beximco (at the current share price) is 82.55B BDT. If I’ve worked this out correctly (be good if somebody else would double check it) l, converting this into GBP gives the company a market cap of £706M. This differs hugely to the U.K. market cap of £360M…. Or have I got my sums wrong.!
Winnings,
I’m a holder here too - have been for the last year or so. Very frustrating that the price is hovering down here when it should be above a £1. Regards your comparison with Dhaka, is there a differing number of shares on each index? This which would explain the huge price difference! It just doesn’t seem normal to have such a huge price error. I hope your right because it means we have ourselves a bargain but it just seems too good to be true! Do we know the market cap of Beximco on each index? Regards
Dhaka price today is up 2.1% to 198.8 Taka which translates into 160.9p.
The discount here is now massive and wholly unjustified IMO.
A correction is bound to happen, sooner or later.
I have topped up once more, making BXP my largest holding by a stretch.
Looks like relatively low volumes in Bangladesh as well and little price movement. Ticking along at around £1.56 equivalent so we are trading at almost exactly 50% here. The new drug approval news appears to have been completely ignored by everyone.
Well today’s announcement did very little for the volume! I know it wasn’t exactly earth shattering news but I was hoping to see a better response. Let’s see how the Bangladeshi shares fair.
Covgaz - Kindly do some research before you shoot nonsence from the hip. No further debate on this.
Usually the discount to the Dhaka share price is in the region of 30%-35%, currently the discount is
precisely 50% (at this moment in time) . Neither of the large discounts is justified IMO, but are
happily accepted by me as I now have built up a cheap stake in BXP. Should just the 50% discount
revert to say 35%, then the share price (here will lift to 101.4p, that makes the shares (PDGs) look a
screaming buy on that account alone! What's even more assuring is the fact that BXP is a well run
Company making nice profits at an accellerating rate. But as always, do not take my word for it,
DYOR or take independent advice.
Good luck to all.
Thank you Winnings1; it seems to be a combination of multiple factors then which the market for this share has assessed to add up to around 40% of the price. It seems a lot but I am doubtful this will change much unless the share gains additional broker interest.
There is no good reason for the large discount. The GDR shares are entitled to the same
dividend as the ordinary shares. So as the company grows and as the annual dividend grows,
GDR holders will enjoy the same growing annual rewards but on a lower investment per
share. No voting rights for GDR holders though, but I never vote anyway, so what's the
problem. GDR' s cannot, however, be traded on the Dhaka stock exchange, which
explains the discount in part - in part only!
…apologies for the spelling/ grammar errors within that message - I accidentally hit send before I could correct it!
I heard an article on the news this morning that a couple were refused entry to Malta because they had been given an Indian manufactured version of the Astra Zenica COVID jab. Although they was nothing wrong with the medical it wasn’t on a list on approved vaccines hence not being allowed in to Malta. Could this have been anything to do with Becimco and the reason for yesterday’s 8% share price fall, which appeared to happen with no explanation?
Let us not be too surprised should both SP's come down 50% in short order because i cannot see a reason for them to go up 50%. If this is the most undervalued stock on AIM, I am totally underwhelmed.
Can anyone explain why these GDR's trade at a significant discount to the parent share price? They seem to trade at around 60% of the share price.
Each GDR is equivalent to one share so surely they should be very close in price to the share price. I can understand a small discount to represent the additional risk of being separated from the security itself and to cater for possible currency movements but 40% seems a lot.
I tried to see if this was a standard matter for other GDR's and I am struggling a bit. An Indian listed pharma company, Cipla, has a GDR trading on the Luxembourg market and that trades at almost no discount.
Any information would be gratefully received.