Nialco debuts on CSE

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.