Home ›› 22 Sep 2021 ›› Stock
The subscription for Mostafa Metal Industries Limited’s Qualified Investor Offer (QIO) will begin on September 26.
The PVC pipe manufactures’ QIO subscription through the electronic system will continue until September 30, it said in a filing with the Dhaka Stock Exchange on Tuesday.
The company will raise a Tk 11 crore by issuing 11 lakh ordinary shares with a face value of Tk 10 each.
The fund raised by the company will be spent on bank loan repayment, working capital, and bearing QIO costs.
Mostafa Metal Industries is the second after Nialco Alloys Ltd that got the QIO approval as an SME firm.
Only qualified investors (QIs) are eligible to take part in the QIO of the SME company.
An individual investor having an investment of a minimum Tk 1 crore in the listed securities will be considered a qualified investor.
The qualified investors include merchant bankers, asset management companies, banks, financial institutions, insurance companies, mutual funds, and alternative investment fund managers, resident or non-resident
Bangladeshis.
On June 30, the Bangladesh Securities and Exchange Commission (BSEC), June 30, approved the company’s proposal for raising capital through the QIO.
Mostafa Metal has reported its EPS of Tk 0.76 and NAV per share of Tk 10.90 (without revaluation reserve) as of December 30, 2020.
The equity shares will be listed on the stock exchanges which set SME platforms in line with the BSEC rules framed in November 2018 to allow SMEs to raise funds from eligible investors.
The company will not be allowed to issue bonus shares in three years from the date of share trading as per rules.
According to the BSEC (Qualified Investor Offer by Small Capital Companies) Rules, a small company’s paid-up capital will be a maximum of Tk 5 crore and would not exceed Tk 30 crore after raising capital through QIO.
