Six small and medium enterprises (SMEs) will make share trading debut on the DSE SME Platform today (Thursday), after two and a half years of its inauguration.
Of the six companies, two are newly listed firms that raised funds through qualified investor offer (QIO) while four others came from the recently abolished over-the-counter (OTC) market.
The two new companies -- Master Feed Agrotec and Oryza Agro Industries -- raised funds worth Tk 100 million each recently.
Four firms that came from the OTC market are Bengal Biscuits, Apex Weaving and Finishing Mills, Wonderland Toys, and Himadri Ltd.
Except for Himadri, five other companies also make their trading debut on the CSE SME Platform today (Thursday), officials said.
The circuit breaker and circuit Filter (price limit) will remain operative from the first trading day on the DSE SME Platform.
The reference price of Himadri will be the last closing price of the company traded at the OTC market at Tk 8.0 each. Its nine months earnings per share (EPS) were Tk 26.08 for July 2020-March 2021 as against Tk 33.11 for July 2019-March 2020.
Wonderland Toy's reference price will be Tk 16.60. Its EPS was Tk 0.09 for July 2019-March 2020 as against Tk 0.07 for July 2018-March 2019.
Bengal Biscuits reference price will be Tk 180. EPS of the company was Tk 0.81 for July 2020-March 2021 as against Tk. 0.44 for July 2019-March 2020.
Apex Weaving and Finishing Mills' reference price will be the last closing price of the company traded at OTC Market at Tk 12. EPS was Tk 0.57 negative for July 2020-March 2021 as against Tk 0.91 negative for July 2019-March 2020.
"Initially, these six companies' shares will be traded on the DSE-SME platform and the number of companies will gradually rise as many SMEs are in the queue to raise funds through QIO," said a DSE official.
The government is working towards giving a boost to the SME sector, which has a huge impact on Bangladesh's economy, he added.
He said trading debut on the DSE SME Platform will create an opportunity for small and medium enterprises (SMEs) to get listed on the stock market.
Investors having a minimum of Tk 5.0 million of investment in the stock market is allowed to trade shares of companies on the SME platforms.
Only qualified investors (QI) registered under the electronic subscription system are allowed to participate under the DSE SME Platform.
If any investor other than QI has shares of companies trading under the SME Platform, he has the only option to sell the shares.
There will be no category on the platform. However, for identification and other related matters, issuers may be treated as "S" as an indicator.
For settlement of trades, provisions for "A" category securities under the mainboard shall be applicable. All the shares trading under the DSE SME Platform shall be considered as marginal securities.
Money adjusted facilities (netting) shall be applicable among the securities under mainboard and DSE SME Platform excluding "Z" categories under mainboard.
Other relevant matters (i.e. transaction fees, AIT) shall be the same as the main board of DSE, said the DSE.
Meanwhile, the prime bourse will hold an inaugural ceremony in this regard today (Thursday) at the DSE Tower at Nikunja.