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Agro Organica set to get listed on SME board to raise Tk 50m

FE REPORT | June 01, 2023 00:00:00

Another SME Agro Organica Ltd is all set to join the SME board of the Dhaka Stock Exchange as the securities regulator on Wednesday approved its proposal to raise Tk 50 million from the stock market.

As per the regulatory approval, the company will issue 5 million ordinary shares at the face value of Tk 10 each under the fixed price method.

Incorporated in 2015, Agro Organica is engaged in agro-business, which entails agro contract farming, trading, processing, and manufacturing for consumers in the local and global markets.

Agro Organica will utilise the fund for an expansion of its building, machinery installation and working capital.

According to the company's unaudited financial statements, its earnings per share stood at Tk 1.12 and the net asset value per share at Tk 14.68 for the nine months through March this year.

The company will not be able to issue stock dividend within three years after its debut on the SME platform, according to the BSEC.

Shahjalal Equity Management is working as the issue manager of the company's qualified investor offer process.

The DSE SME platform started its journey in September 2021, creating an opportunity for small and medium enterprises (SMEs) to raise capital from the stock market, a move to help them reduce debt burden, enhance corporate profile, and create optimal value.

At present, the number of companies listed on the SME board is 16.

Any investor having an investment of Tk 2 million in listed securities of the main board and registered with the electronic subscription system of the stock exchanges is considered eligible for trading on the SME board.

At Wednesday's meeting, the Bangladesh Securities and Exchange Commission also approved a draft prospectus of Investasia Balanced Unit Fund, an open-end mutual fund.

The initial size of the fund will be Tk 500 million. The sponsor of the fund, Investasia Capital and Asset Management, will contribute Tk 50 million, while the remaining Tk 450 million will be collected through sales of units to general investors.

Investasia Capital and Asset Management is working as fund manager while Sentinel Trustee and Custodial Services is the custodian of the fund.

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