• Sunday, Oct 24, 2021
  • Last Update : 09:50 am

Bangladesh's first SME IPO's rakes in 134C against 7.5C demand

  • Published at 06:25 pm May 25th, 2021
Representational photo Bigstock

Net proceeds from the IPO will be used to buy machineries, land development and meet IPO expenses

The country's first small and medium enterprise initial public offer (SME IPO) Nialco Alloys Limited (NAL) received 17.91 times more bid for its 7.5 million ordinary shares put up on sale for eligible investors, as part of its IPO to raise Tk7.5 crore via the fixed price method.

A total of 309 eligible investors subscribed Tk134.39 crore against its demand for Tk7.50 crore.

Earlier, Bangladesh Securities and Exchange Commission (BSEC) approved the country's first SME IPO in favour of Nialco Alloys.

Net proceeds from the IPO will be used to buy machineries, land development and meet IPO expenses.

Also Read - Bangladesh's first SME IPO gets the nod

According to the financial statement ending September 30, 2020, the company's net asset value (NAV) per share was Tk12.43, while earnings per share (EPS) were Tk0.91.

MTB Capital Limited will act as the issue manager for the IPO process.

The company will not be able to issue any bonus shares for the next three years from the share trade on the SME platform.

To accelerate the growth of small-cap companies, the securities regulator formulated rules titled "Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Cap Companies) Rules, 2018."

After raising capital through a qualified investor offer (QIO), a company's paid-up capital will be at least Tk5 crore and the figure would not cross Tk30 crore.

The Chittagong-based Nialco Alloys was incorporated in 2011.

Principal activities of the company included manufacturing high-grade bronze and brass ingots including gun metal, phosphorus bronze, leaded bronze, aluminum bronze, manganese bronze, sand cast brass (scb), high tensile brass (htb), die cast brass (dcb), master alloys, phosphorus copper, etc. conforming to BS, IS, JIS, DIN, ASTM, UNI and as per all other international standards.

Facebook 58
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail