Nialco Alloys, a manufacturer of grade bronze and brass ingots, is awaiting the regulatory consent to raise a capital worth Tk 100 million from the SME Board of the Chittagong Stock Exchange (CSE).
The Chittagong-based company will raise the capital issuing 10 million ordinary shares of Tk 10 each through qualified investors offer (QIO).
Only the eligible investors (EIs) and high net worth individuals are allowed to purchase the company's shares offered through the SME Board.
According to the prospectus, the company's net proceeds will be used to repay the bank loan, to procure plant and machinery and to bear the QIO expenses.
MTB Capital, issue manager of the Nialco Alloys, said the company's QIO prospectus was submitted to the CSE and the securities regulator on December 4 last.
"The port city bourse CSE submitted an observation on the QIO prospectus and placed it to the securities regulator on January 25," said Abu Taher Mohammed Khairul Bashar, CEO at MTB Capital.
He said MTB Capital has also fulfilled the deficiencies addressed by the Bangladesh Securities and Exchange Commission (BSEC) in the QIO prospectus.
"Now, Nialco Alloys is awaiting the regulatory approval for the company's QIO proposal," Mr. Bashar said.
According to the QIO prospectus, the principal activity and the nature of the business of Nialco Alloys include manufacturing of 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, and phosphorus copper.
The company's existing paid-up capital is Tk 150 million and the post-QIO capital will be Tk 250 million.
The company's EPS (earnings per share) and net asset value (NAV) per share were Tk 1.24 and Tk 12 for the year ended on December 31, 2019.
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