The subscription for shares of Oryza Agro Industries through qualified investor offer (QIO) will start at 10:00am on September 5, aiming to raise Tk 100 million.
The company's share subscriptions through electronic subscription system (ESS) under fixed price method of the stock exchanges will be continued till 5:30pm on September 9, officials said.
The stock-market regulator -- Bangladesh Securities and Exchange Commission (BSEC) --on July 14 approved the company's proposal for raising capital through QIO.
As per the BSEC approval, Oryza Agro will raise capital worth Tk 100 million by issuing 10 million ordinary shares of Tk 10 each.
The fund will be raised through the exchanges' SME Platform earlier introduced to ensure long term financing for the small capital companies.
Qualified Investor (QI) shall maintain a minimum investment of Tk 10 million at market price in matured listed securities as on August 25 for submitting application through the ESS of the exchanges.
Only the qualified investors are allowed to receive shares the through QIO and general investors are not allowed to apply for the shares.
The individual investors with an investment in stock market at least Tk 10 million as market price, will be considered as qualified investors, according to the BSEC.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the exchange regarding the holding of QIs in the listed securities and the exchange shall ensure the compliance in this regard.
The company will utilise the proceeds to repay bank loan, working capital and issue management costs.
The company has reported its earnings per share (EPS) of Tk 1.02 and net asset value (NAV) per share of Tk 18.09 (without revaluation reserve) for the year ended on December 30, 2020.
According to the BSEC condition, the company will not be allowed to issue any bonus shares within three years from the date of debut trading.
Imperial Capital and City Bank Capital Resources are jointly working as issue manager.
The principal activities of the company are manufacturing and marketing fish and poultry feed.
Oryza Agro Industries will be the second firm in the SME Platform after Nialco Alloys, which raised Tk 75 million through QIO and started trading on the Chittagong Stock Exchange.
The securities regulator also approved Mostafa Metal Industries and Master Feed Agrotec to raise Tk 110 million and Tk 100 million respectively through QIO.
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