The first-ever small and medium enterprises (SME) - Nialco Alloys -shares trading was halted within the first hour of transaction on debut on Thursday on the newly introduced CSE SME Trading Platform.
Shares of Nialco Alloys, which raised Tk 75 million through qualified investors offer (QIO), were halted at 10 per cent upper circuit breaker, as price limit was as usual applicable circuit breaker from its debut trading.
As usual circuit breaker means that a stock price can rise the highest 10 per cent or decline 10 per cent in a single-day trading.
Only registered qualified investors, including institutional and high net worth individuals, are eligible to participate in trading of securities in SME Trading Platform.
Each share of the company, which mainly manufactures high grade bronze and brass ingots, closed at Tk 11 on Thursday, from a face value of Tk 10 each.
Only two trades were executed on the CSE with a total of 105 shares were changing hands during the first day of trading with a turnover of Tk 1,155, the CSE data showed.
Nialco Alloys will apply for trading on the Dhaka Stock Exchange (DSE) later on, officials said.
Earlier in the morning on Thursday, the stock trading board for SME kicked off at the CSE through debut trading and rings the bell ceremony of Nialco Alloys at the CSE premises in Chittagong.
SMEs had repeatedly been urging the Bangladesh Securities and Exchange Commission (BSEC) to give a chance to raise funds from the stock market.
The stock market regulator passed a rule in 2018, allowing companies with paid-up capital of between Tk 50 million and Tk 300 million to raise funds from the stock market. Previously they could not avail the process for their lower turnovers.
On April 15, Nialco Alloys, one of the SMEs got BSEC approval to go public. The company raised Tk 75 million by issuing 7.50 million ordinary shares from the qualified investors offer (QIO).
Asif Ibrahim, Chairman of the CSE, said SMEs are now allowed to meet their financial demand by raising funds from the stock market.
"This is a historic moment," said Mr Asif while inaugurating the debut trading and ring the bell ceremony of Nialco Alloys as the chief guest.
He noted that entrepreneurs should to get fund promptly from the equity market.
Gazi Mukarram Ali Chowdhury, chairman of Nialco Alloys, Khairul Bashar Abu Taher Mohammed, CEO of MTB Capital and Mamun-Ur-Rashid, managing director of CSE also spoke, among others, at ring the bell ceremony.
The company's shares subscription for qualified investor offer (QIO) for shares of Nialco was held between May 16 and May 20.
Its shares oversubscribed by 18 times as a total of 309 qualified investors applied for the company's shares worth Tk 1.34 billion against total shares of Tk 75 million.
Nialco will use the capital to develop land, purchase machinery and pay for the cost of the listing.
MTB Capital, a sister concern of Mutual Trust Bank, is the issue manager of the company.
The company has reported net profit after tax of Tk 23.76 million (un-audited) in six months for July 2020 to December 2020. Pre-QIO EPS was Tk 1.12 and post-QIO EPS was Tk 0.83. The net asset value (NAV) per share was Tk 12.90 as on December 31, 2020.
Incorporated in June 2011 as a public limited company, Chittagong-based Nialco Alloys is a 100 per cent export-oriented company.
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