The Qualified investor offer (QIO) of Bangladesh Paints Ltd. shares will open for subscription tomorrow (Sunday), aiming to raise Tk 120 million under fixed-price method.
The paint manufacturer's share subscription through electronic subscription system (ESS) of the exchanges will close at 5:30 pm on May 26, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website.
Only the qualified investors (QIs) are allowed to submit applications for the subscription. An individual investor having an investment of a minimum Tk 2.0 million in the listed securities as on May 11 will also be considered a qualified investor.
The Central Depository Bangladesh Limited (CDBL) will send a report to the exchange regarding the holding of the QIs in the listed securities and the exchange will ensure the compliance in this regard.
Recently, the stock market regulator has slashed drastically the minimum investment limit to Tk 2.0 million for an investor to be qualified for the SME Platform. Earlier, the threshold was Tk 10 million.
The move is to attract more investors to the SME Platform where the number of SME scrips is now on the rise.
Currently, 11 SME companies are listed with the DSE's SME Platform.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- on April 12 approved the company's proposal for raising capital through QIO.
As per the regulatory approval, the paint producer will issue 12 million ordinary shares at a face value of Tk 10 each under the fixed price method.
The company will utilise the proceeds for building construction, machinery installation and working capital along with catering the expense of issue management.
According to the company's audited financial statements for the year ended on 30 June 2021, its earnings per share stood at Tk 0.97 and net asset value per share at Tk 15.94.
Prime Bank Investment Limited and CAPM Advisory Limited are jointly working as the issue manager for the company.
The company will not be allowed to issue bonus shares within three years of its debut trading on the SME Platform, according to the BSEC approval.
Incorporated in 2014, BD Paints is producing different types of paints including interior, exterior, wood & metal, industrial and marine paints. Its corporate office is located at Tongi in Gazipur.