The SME platform of the Dhaka Stock Exchange (DSE) is making its debut on Thursday, by trading shares of six companies.
Four of the companies – Apex Weaving and Finishing Mills, Bengal Biscuits, Himadri Ltd, and Wonderland Toys Ltd – are from the over-the-counter (OTC) market.
Master Feed Agrotec Limited and Oryza Agro Industries Ltd – which have raised funds through qualified investor offers (QIOs) – are the other two companies.
Of the companies, Master Feed received approval from the Bangladesh Securities and Exchange Commission (BSEC) in July this year to raise Tk10 crore from the capital market through a QIO.
Manufacturing and marketing poultry, fish, and cattle feeds are the main activities of the company while it is also engaged in poultry and fish farming.
In fiscal 2020-2021, the net profit of the company was Tk7.89 crore and its earnings per share (EPS) was Tk1.38.
Oryza Agro Industries has also received approval from the stock market regulator to raise Tk10 crore from the capital market through QIO.
The principal activities of the company are manufacturing and marketing fish and poultry feed. It will use the money as working capital and for issue management.
The net profit of the company was Tk9.24 crore in the last fiscal that ended 30 June 2021. During the period, its EPS was Tk1.56.
On the other hand, Apex Weaving and Finishing Mills, which has come from the OTC market, posted a Tk0.41 loss per share in the January-March quarter of 2021.
During the quarter, Bengal Biscuits posted EPS Tk0, Wonderland Toys Tk0.02, and Himadri Limited Tk22.55.
Investors having an investment of a minimum of Tk50 lakh in the capital market will be allowed to trade shares of the SME companies.
According to the BSEC order, sponsors, directors, and promoters of the companies, which have been shifted from the OTC market, must be considered as qualified investors for trading on the secondary market of the SME platform.
The companies cannot issue bonus shares for three years after listing on the SME platform. Investors are also allowed to take margin loans against the purchase of their shares on the SME platform.
Key features of the DSE SME platform
Only qualified Investors registered under the Electronic Subscription System are allowed to participate under the DSE SME Platform. If any investors other than qualified investors have shares of companies trading under the DSE SME platform, they only have the option to sell the shares.
All the shares trading under the DSE SME Platform shall be considered as marginal securities.
Other relevant matters will be the same as the mainboard of the DSE.