ADN Telecom stock price jumps 8.3% despite sponsors declare share sale

The share price of ADN Telecom increased by 8.29% in a day, despite the announcement of two of its sponsors on Monday to sell some of their holdings in the company.

The company's shares, which closed at Tk113.4 each on Sunday, reached Tk122.8 yesterday at the Dhaka Stock Exchange (DSE).

Sponsor Mohammad Ali Sarker is going to sell 8.52 lakh shares out of his holding of 17 lakh shares, and the other sponsor Abu Yousof Zakaria is going to sell his entire holding of 17 lakh shares.

The sponsors will sell their said shares at the prevailing market price in the block market through the DSE within the next 30 working days.

Earlier, another sponsor named Mamonoor Rashid declared to sell 2 lakh shares out of his total holding of 17 lakh shares in the company.

From September to November last year, ADN Telecom's share price jumped by 150% and went as high as Tk148.9 per share. But then amid investors' profit-booking sell pressure, the share price came down by 34%, and after that, the three sponsors decided to sell their shares.

ADN Telecom got listed in the stock market by issuing shares at Tk30 each through an initial public offering under the book-building method.

According to sources, the company's current Chairman Asif Mahmood, Mohammad Ali Sarker, Abu Yousof Zakaria, and Mamonoor Rashid are the main sponsors.

Among them, the chairman has 19.18% shares, while the other three have 2.64% each. The three sponsors are going to cut ties with the company by selling off shares.