'The platform aimed to integrate local and foreign investors'
Dhaka Stock Exchange (DSE) and Shenzhen Stock Exchange (SZSE) jointly launched cross-border match-making platform called V-Next, a one-stop pitching mechanism among qualified investors, intermediaries and start-ups to promote the Small and Medium Enterprise Board.
V-Next Alliance platform is designed to facilitate Chinese investment into prospective companies in Bangladesh through information dissemination, online live road show and face-to-face business seminars.
The Bangladesh Securities and Exchange Commission (BSEC) Chairman M Khairul Hossain launched the platform in a program at the InterContinental hotel Monday night.
The platform aimed to integrate local and foreign investors, said Abdul Matin Patwary, acting managing director of DSE.
“This is an excellent opportunity for new entrepreneurs to get finance,” he said, adding that the platform would facilitate auto-matchmaking.
The objective was to build an ecosystem across the two countries to integrate financial intermediary services, institutional investors and projects, Matin said in his presentation.
The V-Next so far achieved remarkable success in China, with over 11,000 institutional qualified investors registered and in excess of a 20% success rate in matching projects to capital, SZSE officials said.
On September 4, last year the SZSE and Shanghai stock exchanges joined the DSE as its strategic shareholder through purchasing 25% stake of the DSE for Tk947 crore.
The BSEC chairman said they were ‘lucky’ as the Chinese consortium became strategic partner of the DSE.
“The market intermediaries will be able to increase their operating profits by taking the advantage of V-Next platform,” Khairul said.
He said the V-Next platform would play a vital role in intensifying the foreign portfolio investments in SMEs and listed companies as well.
Khairul also said: “The corporate culture and governance of our companies will also be enriched.”
At Monday’s programme, the BSEC chairman said some 10 small cap companies were in the pipeline to be listed with the DSE’s SME platform.
“An SME company will get the listing approval soon,” BSEC chairman added.
Waqar Ahmed Choudhury, managing director of VANGUARD Asset Management, said many SMEs would get support from foreign investors to strengthen their capital base.
“The financial hurdles of the small cap companies will be reduced through the introduction of V-Next platform,” Waqar said.
Minhaz Mannan Emon, a DSE director, said the country’s capital market reaped the benefits from the Chinese consortium.
“V-Next will reply to the questions regarding expectations. The country’s premier bourse will reach a new height,” Emon said in his speech.
DSE chairman Professor Abul Hashem was present at the programme, among others.
Last year, the regulator issued rules for qualified investor for small capital companies, with at least Tk5 crore as paid-up capital to make scope for them to raise fund from the markets using fixed price method.
However, if a company wants to raise fund through book building method, its minimum paid-up capital must be Tk10 crore, according to the rules.
Earlier, no company with paid-up capital less than Tk30 crore was allowed to be listed with the exchanges.
Stakeholders have said that the platform would encourage young entrepreneurs to widen their business by raising fund through the stock market.