BSEC paves way for Beximco Pharma to avert London delisting

Beximco Pharmaceuticals has moved a step closer to resolving the boardroom standoff that put its London listing at risk, after Bangladesh’s stock regulator gave the company the go-ahead to hold a board meeting and finally sign off on its overdue accounts.

The Bangladesh Securities and Exchange Commission (BSEC) has given consent to the drugmaker convening a board meeting to approve audited financial statements for the year to June 30, 2025.

Clearing that backlog could help the company meet the rules of London’s Alternative Investment Market (AIM) and avoid cancellation of its securities from trading in London.

The latest regulatory decision follows months of uncertainty triggered by a legal dispute over board composition.

After the political changeover in 2024, the BSEC appointed nine independent directors to Beximco Pharma following a directive from the finance ministry. Beximco Pharma challenged the move in court. Its board has not met to approve accounts, or publish results, since.

In a disclosure to the Dhaka Stock Exchange (DSE) yesterday, the pharma company said its board would meet today to consider the delayed accounts.

Mohammad Asad Ullah, company secretary of Beximco Pharma, said, “The previous board will hold the board meeting as the new board remains under the litigation process.”

“This approval was given by the BSEC,” he added.

In its letter granting consent, the BSEC said it gave the go-ahead “for the protection of greater interest of the investors, accords its consent to hold the meeting of the board of directors of Beximco Pharmaceuticals PLC for the purpose of approval and publication of the financial statements of Beximco Pharmaceuticals PLC and its subsidiaries”.

Md Abul Kalam, spokesperson of the BSEC, said the decision was taken to protect both investors and the country’s market reputation

“To save the image of the country and for the interest of investors, the regulator allowed the board meeting,” he said.

Beximco Pharma is currently the only Bangladeshi company listed on AIM. Kalam said the possibility of delisting would have implications for the credibility of Bangladesh’s capital market.

The governance dispute has had consequences for shareholders, too. Since the legal dispute began, Beximco Pharma has not published quarterly results or annual financial statements.

The absence of audited accounts led to the suspension of trading in its global depositary receipts on AIM on January 2.

Under London Stock Exchange rules, a company must publish audited annual accounts within six months of its financial year ends. If trading remains suspended for six months, admission can be cancelled unless issues are resolved.

As the deadline approached, concerns grew among investors that the suspension could result in delisting.

Shares in Beximco Pharma fell 1.58 percent to Tk 143 on the Dhaka Stock Exchange yesterday, having risen earlier in the week on hopes of a breakthrough.

Speaking on condition of anonymity, a top official of a brokerage house said the regulator’s involvement has been read by investors as a signal that the matter is finally being taken seriously.