The trading of the shares of Nialco Alloys will commence at the CSE SME Platform from Thursday under settlement category “N”.
Nialco Alloys is the country’s first-ever small and medium enterprise (SME) which will make its debut on the newly introduced CSE SME platform.
The Chittagong-based company’s scrip ID is 16601 and its scrip code is “NIALCO” on the CSE.
Only registered qualified investors (QI) will be allowed to trade in this newly introduced CSE SME Platform, according to a filing with the Chittagong Stock Exchange (CSE) on Tuesday.
The CSE also informed that SME registration for qualified investors (QI) is open. Without registration, trading in the CSE SME Platform will not be possible by QIs.
Nialco Alloys will later apply for trading on the Dhaka Stock Exchange (DSE). The company will start trading on the DSE after getting approval, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) approved the company’s proposal to raise Tk 75 million by issuing 7.50 million ordinary shares through a qualified investor offer on April 15, this year.
The company’s shares subscription for qualified investor offer (QIO) was held between May 16 and May 20.
Its shares oversubscribed by 17.91 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.
Each share of the company, which mainly manufactures high-grade bronze and brass ingots, is a face value of Tk 10.
Nialco will use the capital to develop land, purchase machinery and pay for the cost of the listing.
The company will not be able to issue any bonus shares for the next three years from the beginning of trading, as per BSEC condition.
MTB Capital, a sister concern of Mutual Trust Bank, is the issue manager of the company.
According to financial reports for July-September, 2020, earnings per share of the company stood at Tk 0.91 and net asset value per share (NAV) stood at Tk 12.43 without revaluation reserve.
Incorporated in June 2011 as a public limited company, Nialco is a 100 per cent export-oriented firm and the demand for copper products is increasing globally.
The small-cap board was rolled out in April 2019 with a view to facilitating small and medium-sized enterprises in raising funds. Previously they could not avail the process for their lower turnovers.