BSEC rejects Tk15cr QIO of Saraz Fiber
The market regulator requires Saraz to buy the land it leased for doing business
The Bangladesh Securities and Exchange Commission (BSEC) has rejected the qualified investors offer (QIO) of Saraz Fiber Tech Ltd because the recycled yarn spinning company does not meet regulatory requirements.
The company wanted to raise Tk15 crore from the SME platform of the Dhaka Stock Exchange (DSE) by issuing 1.5 crore ordinary shares.
It had intended to use the QIO fund for repaying bank loans, purchasing machinery, building a warehouse, and increasing working capital.
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Saraz Fiber Tech, which went into commercial operation in 2012, processes different types of wastes and makes recycled yarns.
According to sources, the company established its business on leased land but BSEC requires it to acquire the land for doing business.
After the land acquisition, the company will apply for the QIO afresh.
From July to December 2021, its revenue was Tk32.03 crore and its net profit was Tk1.14 crore.
During the period, the company's total assets stood at Tk35.67 crore and retained earnings at Tk2.56 crore.
Its earnings per share stood at Tk1.27 and net asset value per share at Tk12.82.
Sonar Bangla Capital Management Limited was the issue manager of the company.
