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.
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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.
