The Bangladesh Securities and Exchange Commission (BSEC) has allowed Mostafa Metal Industries to raise Tk 11 crore via Qualified Investor Offer (QIO).
The fund raised by the company will be spent on bank loan repayment, working capital, and QIO costs, said the regulator in a statement.
Mostafa Metal Industries is the second after Nialco Alloys Ltd that got the QIO approval as an SME firm on April 15 this year.
The company’s offer value is Tk 10 for each share, said the statement.
Its earnings per share stood at Tk 0.76 and NAV without revaluation reserve Tk 10.90, according to its financial statement ended on December 30, 2020.
An individual investor having an investment of a minimum of Tk 1 crore in the listed securities will be considered a qualified investor.
The qualified investors include merchant bankers, asset management companies, banks, financial institutions, insurance companies, mutual funds, and alternative investment fund managers, resident or non-resident Bangladeshis.
Its earnings per share are Tk 0.91 and NAV without revaluation reserve is Tk 12.43, according to its financial statement ended on September 30, 2020.
The equity shares will be listed on the stock exchanges which set SME platforms in line with the BSEC rules framed in November 2018 to allow SMEs to raise funds from eligible investors.
The company will not be allowed to issue bonus shares in three years from the date of share trading as per rules.
According to the BSEC (Qualified Investor Offer by Small Capital Companies) Rules, a small company’s paid-up capital will be maximum Tk 5 crore and would not exceed Tk 30 crore after raising capital through QIO. ♦
