FM Plastic Industries PLC in a letter has request the Bangladesh Securities and Exchange Commission (BSEC) to take necessary steps enabling it to be listed on the SME platform of the country’s stock exchanges.
The country’s one of the leading producers of disposable plastic and food-grade products wants to raise capital worth Tk 5 crore for its business expansion through qualified investor offer (QIO).
The products of FM Plastic Industries range from cups, plates, lids, bowls, boxes, trays to blister packaging, and face masks.
The company holds the largest market share in the biscuit tray segment in the country.
In line with the BSEC (Qualified Investor Offer by Small Capital Companies) Rules, 2018, the company plans to issue 50 lakh shares at Tk 10 each to eligible investors through the qualified investor offer.
As per its financial statements till March 31 this year, the company’s revenue stood at Tk 22.2 crore in the first nine months of FY23, which was Tk 21.4 crore in the same period the year before.
During the period, its net profit was Tk 1.9 crore, compared to Tk 2.28 crore in the nine months of FY22. FM Plastic Industries’s net asset value per share and earnings per share (EPS) were Tk 13.03 and Tk 0.89 respectively for July-March of the fiscal year 2022-23.
As per SME-listing rules, only qualified investors can submit their intention to subscribe the issue offered by the SMEs for raising fund as general investors cannot participate in the subscription and share trading there.
According to the rules formulated for the SME board, the QIO proposals of small-cap companies will be allowed under both the fixed price and book-building methods.
After raising capital through a qualified investor offer (QIO), a company’s paid-up capital will be at least Tk 5 crore, and the figure would not cross Tk 30 crore.
The minimum capital of a firm willing to raise capital through the book-building system must be Tk 10 crore before its listing on the SME platform.
As per the company’s draft prospectuses, it is leveraging the growing demand of disposable plastic and food grade products in the country driven by increasing consumption of the fast-moving consumer goods such as biscuit, cake, ice cream, packaged beverages, coffee, tea, and ready to eat foods.
FM Plastic Industries’ largest customer is Olympic Industries, the market leader and fastest-growing branded biscuit producer in the country.
The company’s other notable customers are Reedisha Food & Beverage, Dekko Foods, Newzealand Dairy Products Bangladesh, Orion Pharma, United Hospital, Square Pharmaceuticals, ACI Logistics, and Marico Bangladesh.
Md Gazi Tauhidur Rahman, the founder and managing director of the company, is a renowned entrepreneur and contributor in the SME sector of Bangladesh. He received the prestigious National SME Entrepreneur Nomination as medium entrepreneur of the year from the prime minister in 2018. He has 28 years of professional and business experience.
