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The Financial Express

Two more SME firms get BSEC nod to raise funds through QIO

Oryza Agro, Master Feed Agrotec to raise Tk 100m each


| Updated: July 17, 2021 09:31:30


Two more SME firms get BSEC nod to raise funds through QIO

The stock market regulator has approved two more SME firms’ proposals for raising capital worth Tk 100 million each through a qualified investor offer (QIO).

The companies are Oryza Agro Industries Ltd and Master Feed Agrotec Ltd.

The approval came on Wednesday at a meeting held at the Bangladesh Securities and Exchange Commission (BSEC) presided over by its Chairman Prof Shibli Rubaiyat-Ul-Islam.

The firms will raise the capital through the exchanges’ SME platform earlier introduced to ensure long term financing for the small capital companies.

According to the BSEC approval, Oryza Agro Industries will raise capital of Tk 100 million by issuing 10 million ordinary shares to eligible investors through qualified investor offer.

The company will utilise the proceeds to repay the bank loan, working capital and issue management costs with a face value per share of Tk 10.

It is not a public offer. Only eligible investors are allowed to receive shares through QIO.

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 approval, 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 managers.

As per the BSEC approval, Master Feed Agrotec will raise a capital worth Tk 100 million by issuing 10 million ordinary shares to eligible investors through qualified investor offer.

The company will utilise the proceeds for working capital and issue management costs with a face value per share of Tk 10.

The company has reported its earnings per share (EPS) of Tk 0.68 and net asset value (NAV) per share of Tk 14.08 (without revaluation reserve) for the year ended on December 31, 2020.

The company will not be allowed to issue any bonus shares within three years from the date of debut trading, as per the BSEC approval.

General investors are not allowed to apply for the shares issued through QIO. Only eligible investors are allowed to receive shares through QIO.

NBL Capital & Equity Management and Asian Tiger Capital Partners Investments are jointly working as issue managers.

An individual investor (Resident and Non-resident) having an investment of a minimum of Tk 10 million in the listed securities will be considered a qualified investor, according to the BSEC approval.

The qualified investors include merchant bankers, asset management companies, banks, financial institutions, insurance companies, mutual funds, and alternative investment fund managers.

Oryza Agro Industries and Master Feed Agrotec are the third and fourth firms in the SME platform.

Recently, BSEC has approved Mostafa Metal Industries as the second SME firm to raise Tk 110 million through QIO.

SME firm Nialco Alloys, which raised Tk 75 million through QIO, made its debut trading on the Chittagong Stock Exchange recently for the first time in Bangladesh.

At Wednesday’s meeting, the securities regulator also approved the amendment to Bangladesh Securities and Exchange Commission (Public Issue) Rules 2015, which will be published soon as a gazette.

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