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Two cos to raise capital through SME Platform

FE Report | Published: May 13, 2019 10:58:07 | Updated: May 20, 2019 11:11:05


Two small cap companies namely Krishibid Seed and Annex Suites have taken initiatives to raise capital through SME Platform of the country's premier bourse.

As part of the process of raising capital, both the companies have signed agreement with their issue manager-- MTB Capital.

The Dhaka Stock Exchange (DSE) formally launched the 'DSE SME Platform' on April 30 last to facilitate the growth of small and medium sized companies.

As per the agreement, Krishibid Seed, a private limited company of Krishibid Group, will raise a capital worth Tk 150 million offloading 15 million ordinary shares at an offer price of Tk 10 each under the fixed price method.

The company produces, processes and markets high quality seeds of cereals and other high value crops and assists farmers to enhance crop production.

"Experienced agricultural scientists are involved directly in all these activities and they use modern technologies and infrastructures to ensure quality and services," according to the company's official website.

Annex Suites, a luxury resort situated at Jaleshwaritola in Bogura, will raise a capital worth Tk 100 million under the fixed price method.

Md. Ali Afzal, chairman, and Sifat Ahmed Chaudhuri, director of finance of Krishibid Seed, and Khandaker M. Azad, managing director of Annex Suites, were present at the signing ceremony on behalf of their respective companies.

On the other hand, Khairul Bashar Abu Taher Mohammed, CEO, and Abdullah Shaleh Arafin, manager of MTB Capital, were present on behalf of the issue manager.

According to the rules of SME Platform, only the qualified investors can submit their intention to subscribe the issue offered by the SMEs for raising fund.

The qualified investors are 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 Bangladeshi, individuals having minimum net worth of Tk 10 million and other institutions as approved by the commission.

mufazzal.fe@gmail.com

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