The subscription to shares of Star Adhesive Ltd, a concern of Star Partex Group, through qualified investor offer (QIO) will begin tomorrow (Sunday), 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 a disclosure posted on the Dhaka Stock Exchange website recently.
On February 15, the stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- 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.
The fund will be raised through the exchanges' SME platform dedicated to ensuring long-term financing for small-capital companies.
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.
Recently, the stock market regulator slashed drastically the minimum investment requirement for a qualified investor to attract more investors to the SME platform.
Earlier, the minimum investment threshold was Tk 10 million for a qualified investor.
The Central Depository Bangladesh Ltd (CDBL) will send a report to the exchange regarding the holding of QIs in the listed securities and the exchange will then ensure compliance in this regard.
As per the regulatory approval, the company will not be allowed to issue bonus shares in three years from the date of debut trading on SME platform.
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 the period from 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.
Adhesives are used as a backward linkage material for board, door, leather, footwear, plastic and paint industries in the country, according to the company's prospectus.
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