Bangladesh Securities and Exchange Commission has approved the proposal of the qualified investor offer (QIO) of Agro Organica PLC, which will raise a fund of Tk 5 crore.
The securities regulator took the decision at a commission meeting with its Chairman Professor Shibli Rubayat Ul Islam in the chair on Wednesday.
Agro Organica received approval to issue 50 lakh ordinary shares at a price of Tk 10 per share to eligible investors, as per a BSEC circular.
The small-cap company will raise this capital to create long-term financing opportunities in the SME Sector.
The approved capital will be utilised for the expansion of factory buildings, acquisition of machinery, working capital, and issue management expenses.
According to the its financial statement for the period from July 2021 to March 2022, the company’s earnings per share (EPS) was Tk 1.12, and the net asset value per share (NAV per share) was Tk 14.68.
The company is restricted from issuing any bonus shares in the next three years from the date of its share trading on the bourses’ SME platforms.
Shahjalal Equity Management Limited has been entrusted with the responsibility of managing the issue.
Incorporated in August 2011, Agro Organica has been operational since October 2015. The company operates a factory in the BSCIC industrial area in the Sherpur district under Mymensingh division, along with the central warehouse in Dhaka.
The company is known by its brand name ‘Khusboo’ and offers nearly 100 varieties of products in categories such as rice, saffron, isabgol, spices, ghee, jelly, and pickles, which are popular in the local market.
In the July-September quarter of the fiscal 2021-22, Agro Organica recorded a net profit of Tk 1.48 crore, an increase from Tk 1.22 crore during the same period of the previous year. Its sales revenue for the period was Tk 12.32 crore, compared to Tk 10.70 crore from the corresponding period a year ago.