Stocks of Nialco Alloys made their trading debut yesterday, marking the first such exchange for the Chittagong Stock Exchange's (CSE) board for small and medium enterprises (SMEs).
At the end of the trading session, 105 stocks were traded, worth Tk 1,154. The closing price was Tk 11. There was buyers seeking 8.89 lakh shares. But shareholders were not interested.
The government is working to give a boost to the SME sector as it has a huge impact on Bangladesh's economy, said CSE Chairman Asif Ibrahim.
The CSE has now become a part of history in the listing of the SMEs, he added during Nialco's opening bell ceremony.
SMEs had repeatedly urged the Bangladesh Securities and Exchange Commission (BSEC) to enable them to raise funds through the stock market.
The BSEC met their demand by passing a rule in 2018 allowing companies with paid-up capital of between Tk 5 crore and Tk 30 crore to raise funds from the stock market.
There are about 78 lakh SMEs in Bangladesh employing about 2.5 crore workers in the sector, according to the Bangladesh Bureau of Statistics.
In April, Nialco Alloys, a manufacturer of high-grade bronze and brass ingots, got the nod to go public and have stocks traded on the board.
Turning into the country's first-ever SME to enter the stock market, Nialco raised Tk 7.5 crore from qualified investors by issuing 75 lakh shares at Tk 10 each.
In the SME platform, general investors are not allowed to make purchases.
If any individual has investments of more than Tk 1 crore in listed securities, then he or she is considered a qualified investor.
Nialco's earnings per share was Tk 0.91 for the period that ended on September 30, 2020, while its net asset value without a revaluation reserve was Tk 12.43.
With the quality investors offering (QIO) proceeds, the company is said to be developing its facilities and bear the IPO expenses. MTB Capital was the issue manager.