Subscription for Nialco Alloys shares to eligible investors begins May 16
The first company for SME platform to raise Tk 75 million
FE REPORT | Tuesday, 4 May 2021
The subscription for shares of Nialco Alloys Ltd by the eligible investors through electronic subscription system (ESS) under the fixed price method will begin on May 16.
The company's subscription will be continued until May 20, according to a disclosure posted on Chittagong Stock Exchange (CSE) website on Sunday.
The stock market regulator allowed Nialco Alloys to raise Tk 75 million with qualified investor offer (QIO) by issuing 7.5 million ordinary shares to eligible investors on the small-cap platforms of the stock exchanges on April 15, this year.
Nialco Alloys is the first qualified investor offer (QIO) approved by the Bangladesh Securities and Exchange Commission (BSEC) for trading on the SME platform.
Each share of the company, which mainly manufactures high grade bronze and brass ingots, will have a face value of Tk 10.
The BSEC said Nialco's shares subscription is not a traditional public offering, meaning not all general investors can buy the shares of the firm. Only eligible and institutional investors can invest in SME shares.
Individual investors shall consider as qualified investor who allows to submit application shall maintain a minimum investment of Tk 10 million in the listed securities (matured securities) at market price (the close price of both exchanges whichever is higher) as on the end of a working day which is immediately preceded by five working days from the first day of starting the subscription, meaning on May 4.
Exchanges shall send the list of BO accounts who have applied in the QIO to the Central Depository Bangladesh Limited (CDBL).
The CDBL shall verify the list of BO Accounts provided by the exchange regarding investment of general applicants in listed securities as per the BSEC (Qualified Investor Offer by Small Capital Companies) Rules 2018 as well as other relevant rules and regulations through the ESS for the ordinary shares of Nialco Alloys, which is in accordance with the BSEC consent dated April 29, 2021.