The securities regulator will hold a public hearing on the procedure of listing and trading of the shares of the companies which will raise capital through the qualified investors offer (QIO).
Top officials of different market operators including both the bourses and different qualified investors will attend the public hearing to be held online on May 31.
The officials of the Bangladesh Securities and Exchange Commission (BSEC) said the objective of holding public hearing is to create awareness about the procedure, listing and trading of the QIO to facilitate the growth of the potential SMEs (small and medium-sized enterprises).
Shaikh Shamsuddin Ahmed, a BSEC commissioner, Sharif Anwar Hossain, the president of DSE Brokers Association, Md. Sayadur Rahman, president of Bangladesh Merchant Bankers Association, Shamim Ahsan, chairman of the Venture Capital & Private Equity Association of Bangladesh and M. Shaifur Rahman, chief operating officer of Dhaka Stock Exchange (DSE), are expected to attend the public hearing.
"The different issues of the QIO will be discussed at the public hearing. Qualified investors will also be able to press their opinion regarding investments in small cap companies," said the BSEC executive director Rezaul Karim.
He said the public hearing will help the securities regulator to take corrective measures, if required, to ease the procedure of the QIO.
To accelerate the growth of the potential small cap companies, both the bourses earlier launched SME board and the securities regulator has already the QIO of a company namely Nialco Alloys.
The Nialco Alloys is the country's first-ever small and medium enterprise (SME) to enter the stock market for trading on the stock exchanges' SME platform.
On April 15, the Bangladesh Securities and Exchange Commission (BSEC) allowed Nialco Alloys to raise Tk 75 million from qualified investors by issuing 7.5 million ordinary shares. The subscription of Nialco Alloys has opened opened on Sunday.
General investors are not eligible to take part in the subscription of the small cap companies which will be allowed to raise capital through QIO.
As per the rules, only qualified investors are eligible to take part in subscription of the QIO.
The qualified investors include merchant bankers and portfolio managers, asset management companies, mutual funds and collective investment scheme (CIS), stock dealers, banks, financial institutions, insurance companies, alternative investment fund managers, alternative investment funds, market makers, issuer of listed securities, resident or non-resident Bangladeshis, individuals having minimum net worth of Tk 10 million and other institutions as approved by the commission.
Before launching the small cap boards, the securities regulator earlier formulated rules titled Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Cap Companies) Rules, 2018.
After raising capital through qualified investor offer (QIO), a company's paid-up capital will be at least Tk 50 million and the figure would not cross Tk 300 million.
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