MK Footwear PLC, a producer and exporter of footwear products has successfully raised Tk10 crore from the qualified investor offer (QIO) in the SME market.
A total of 1,699 qualified investors bid for the company shares at a face value of Tk10 per share, resulting in a cumulative bid value of Tk55.4 crore, according to the website, essbangladesh.com.
The qualified investor offer was oversubscribed by 4.5 times.
More investors are rushing to bid for the companies getting listed in the SME market thanks to the stock price returns displayed by the recent QIOs in this segment, said a stock broker.
Each qualified investor that placed a maximum bidding amount of Tk50 lakh has been allocated 9,031 shares of the company, showed the allotment report.
As of June-end 2022, the company has 37,847,200 shares outstanding that will witness an increase of another 10,000,000 shares after the completion of the fundraising through QIO.
The raised capital will be utilized in the procurement of plant and machinery, as mentioned by the company in its QIO prospectus.
MK Footwear generated a net profit of Tk10.3 crore in the fiscal year ending 2022 as compared to a net profit of Tk1.1 crore in FY2021 and a net loss of Tk0.1 crore in FY2022.
Alpha Capital Management Limited is the issue manager and underwriter of the company.
