• Tuesday, Feb 07, 2023
  • Last Update : 09:24 am

BSEC gives nod to 2nd SME IPO

  • Published at 12:41 pm July 1st, 2021
Mostafa Metal

This makes Mostafa Metal the second SME after Nialco Alloys Limited (NAL) to go public

The Bangladesh Securities and Exchange Commission (BSEC) has given its approval for another small and medium enterprise (SME) to enter the stock market.

The stock market regulator on Wednesday instructed to issue Tk11 crore worth of ordinary shares in favour of Mostafa Metal Industries Ltd.

This makes Mostafa Metal the second SME after Nialco Alloys Limited (NAL) to go public.

The organization will raise funds for bank loan repayment, working capital and issue management costs with a face value per share of Tk10 to investors.

Also Read - Bangladesh's first SME IPO's rakes in 134C against 7.5C demand

According to a BSEC circular, eligible investors will be sought through Qualified Investor Offer (QIO) as per Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Capital Companies) Rules, 2018.

Additionally, the issuing company will not be able to issue any bonus shares for the next three years from the date of transaction on the SME platform.

NBL Capital & Equity Management Limited and Swadesh Investment Management Limited will be working as the issue managers.

Meanwhile, the commission also approved IFIC Bank Limited's proposal of a Tk500 crore unsecured, non-convertible, floating subordinate bond.

Through the raised capital the bank will strengthen its capital base.

The face value of the bond will be Tk1 crore per unit, for which Kalyan Insurance Company Limited and Standard Chartered Bank will act as the arranger and trustee.

The floor coupon rate of subordinated bonds is 7.5% and a ceiling of 10.5%, which is applicable to financial institutions, mutual funds, insurance companies, listed banks, cooperative banks, regional rural banks, organizations, trusts, autonomous corporations and other eligible investors. The bonds will be issued through private placement.

The commission also approved the request of issuing a certificate of registration as Resource Manager to Sandhani Asset Management Limited.

Prof Shibli Rubaiyat-Ul-Islam, chairman of BSEC, presided over the commission meeting.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail