BSEC approves two more SMEs to raise capital

The stock market regulator has approved two more SME sector firms' proposal for raising capital worth Tk 100 million each through qualified investor offer (QIO).
The companies are Oryza Agro Industries Ltd and Master Feed Agrotec Ltd.
The approval came on Wednesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC) presided over by its Chairman Prof Shibli Rubaiyat-Ul-Islam.
The capital will be raised through the exchanges' SME platform earlier introduced to ensure long term financing for the small capital companies.
According to the BSEC approval, Oryza Agro Industries will raise capital of Tk 100 million by issuing 10 million ordinary shares to eligible investors through qualified investor offer.
The company will utilise the proceeds to repay bank loan, working capital and issue management costs with a face value per share of Tk 10.
It is not a public offer and general investors are not allowed to apply for the shares issued through QIO. Only the eligible investors are allowed to receive shares through QIO.
The company has reported its earnings per share (EPS) of Tk 1.02 and net asset value (NAV) per share of Tk 18.09 (without revaluation reserve) for the year ended on December 30, 2020.
According to the BSEC approval, the company will not be allowed to issue any bonus shares within three years from the date of debut trading.
Imperial Capital and City Bank Capital Resources are jointly working as issue manager.
As per the BSEC approval, Master Feed Agrotec will raise capital worth Tk 100 million by issuing 10 million ordinary shares to eligible investors through qualified investor offer.
The company will utilise the proceeds for working capital and issue management costs with a face value per share of Tk 10.
The company has reported its earnings per share (EPS) of Tk 0.68 and net asset value (NAV) per share of Tk 14.08 (without revaluation reserve) for the year ended on December 31, 2020.
The company will not be allowed to issue any bonus shares within three years from the date of debut trading, as per the BSEC approval.
General investors are not allowed to apply for the shares issued through QIO. Only the eligible investors are allowed to receive shares the through QIO.
NBL Capital & Equity Management and Asian Tiger Capital Partners Investments are jointly working as issue manager.
The individual investors (Resident and Non-resident) who are investment in stock market at least Tk 10 million or above as market price will be considered as qualified investors, according to the BSEC approval.
Oryza Agro Industries and Master Feed Agrotec are the third and fourth firms in the SME platform.
Recently, BSEC has approved Mostafa Metal Industries' as second SME to raise Tk 110 million through QIO.
The first-ever SME -- Nialco Alloys, which raised Tk 75 million through QIO, made debut trading on the Chittagong Stock Exchange recently.
At Wednesday's meeting, the securities regulator has also approved the amendment of Bangladesh Securities and Exchange Commission (Public issue) Rules 2015 which will be published soon as Bangladesh gazette.

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