Nialco Alloys Limited has made its debut on the small medium enterprise platform of the Chittagong Stock Exchange on Thursday.
It is the first SME listed on a stock exchange in the country.
Share prices of the company soared by the maximum limit allowed — 10 per cent — on debut to close at Tk 11 a share on Thursday. Only 105 shares of the company were traded on the day.
Earlier on April 15, the Bangladesh Securities and Exchange Commission gave approval to Nialco Alloys to raise Tk 7.5 crore through qualified investors’ offer.
The company’s qualified investor offer (QIO) was completed in May 16-20 through an electronic subscription system under the fixed-price method of the IPO.
The IPO shares of the company were oversubscribed around 18 times.
Of the IPO proceeds, the company has planned to spend Tk 4.86 crore on plant and machinery and Tk 2.56 crore on land development.
MTB Capital was the issue manager of the company.
As per financial statements as of September 30, 2020, Nialco Alloys’ net asset value per share (NAV without revaluation reserve) and earnings per share were Tk 12.43 and Tk 0.91 respectively.
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