The subscription for shares of Krishibid Seed Ltd, a concern of Krishibid Group, through qualified investor offer (QIO), will begin Sunday, aiming to raise Tk 116 million.
The seed producer's subscription through electronic subscription system (ESS) under the fixed-price method will be continued till 5:30pm on March 24, according to Dhaka Stock Exchange.
The Bangladesh Securities and Exchange Commission (BSEC)--on January 31 approved the company's proposal for raising capital through QIO.
As per the regulatory approval, Krishibid Seed will issue 11.6 million ordinary shares of Tk 10 each to raise the said amount under the fixed price method.
The fund will be raised through the exchanges' SME platform earlier introduced to ensure long-term financing for the small-capital companies.
Only the qualified investors are allowed to submit applications through QIO to the company's shares.
An individual investor having an investment of a minimum Tk 2.0 million in the listed securities as on March 9, will also be considered as a qualified investor.
It is the first SME firm's share subscription after the securities regulator slashed drastically the minimum investment limit for an investor to be qualified for the SME Platforms of the exchanges.
Earlier, the threshold was Tk 10 million. The move is to attract more investors on the platform where the number of SME scrips is now on the rise.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the exchange regarding the holding of QIs in the listed securities and the exchange shall ensure the compliance in this regard.
The company will not be allowed to issue bonus shares in three years from the date of debut trading on exchanges SME platform.
The company will utilise the proceeds for the purpose of building a cold storage depot, storage building, and seed research along with catering the expense of issue management.
SBL Capital is working as issue manager of the Krishibid Seed.
According to the financial statement for the period July 1, 2021 to September 30, 2021, the company's earnings per share (EPS) is Tk 0.60 and net asset value (without revaluation) per share is Tk 12.60.
Incorporated in 2016, the principal activity of the company is to produce and import different kinds of quality seeds, like vegetables, maize, rice, wheat, oil, pulse, grass and potato.
Krishibid Feed, another concern of the Krishibid Group, had earlier got listed on the SME board of the premier bourse by raising Tk 220 million from the stock market.
Star Adhesive: The subscription to shares of Star Adhesive Ltd, a concern of Star Partex Group, through qualified investor offer (QIO) will begin on March 27, as the company aims to raise Tk 50 million under the fixed-price method.
The period of subscription through the electronic subscription system (ESS) will end at 5:30pm on March 31, according to DSE.
On February 15, the stock market regulator approved the company's proposal for raising capital.
As per the regulatory approval, Star Adhesive will issue 5.0 million ordinary shares of Tk 10 each.
Only the qualified investors are allowed to submit applications for the company's shares.
An individual investor having an investment of a minimum of Tk 2.0 million in the listed securities as on March 16 will also be considered as a qualified investor.
The company will not be allowed to issue bonus shares in three years from the date of debut trading on SME platform, according to the regulatory approval.
The company will utilise the proceeds for factory renovation, working capital, repaying bank loans and meeting the cost of the QIO.
The company has reported its basic earnings per share (EPS) at Tk 6.05 while the diluted EPS stood at Tk 1.80 for July 1, 2020 to June 30, 2021.
For the same period, the company's net asset value (NAV) without revaluation reserve stood at Tk 12.56.
AAA Finance and Investment is working as the issue manager for the QIO of the Star Adhesive.
Incorporated in 2013, the firm manufactures different types of adhesives, lubricants, lacquer, spray paint, and also produces brake oil and grease.
