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Nialco Alloys share subscription begins

The first SME to raise Tk 75m from capital market


FE REPORT | May 17, 2021 00:00:00


The subscription for shares in Nialco Alloys through qualified investor offer (QIO) began on Sunday under the fixed-price method, which will continue until May 20 using an electronic subscription system.

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 face value of each share of the company, which mainly manufactures high grade bronze and brass ingots, is fixed at Tk 10.

The shares will be traded on the SME platform of the bourses where general investors are not permitted to trade. Only eligible and institutional investors can subscribe to SME shares.

Individual investors shall also be considered as qualified investor who shall maintain a minimum investment of Tk 10 million only at market price (the close price of both exchanges, whichever is higher) in matured listed securities as on May 4 as per condition.

The Central Depository Bangladesh Ltd. (CDBL) shall send a report to the exchange regarding the holding of eligible investors (EIs) in the listed securities and the exchange shall ensure the compliance in this regard.

Nialco will use the capital to develop land, purchase machinery and pay for the cost of the listing. It cannot issue bonus shares for three years from the beginning of trading.

MTB Capital, a sister concern of Mutual Trust Bank, is the issue manager of the company.

According to financial reports for July-September 2020 quarter, earnings per share of the company stood at Tk 0.91 and the net asset value per share (NAV) stood at Tk 12.43 without revaluation reserve.

The small-cap board was rolled out in April 2019 with a view to facilitating small and medium-sized enterprises in raising funds. Previously, they could not avail the process for their low turnovers.

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