Mostafa Metal gets nod to raise Tk11 crore
It will issue 1.1 crore general shares, each priced at Tk10
Mostafa Metal Industries has received approval to raise Tk11 crore from the capital market through a qualified investor offer.
The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday.
The company will issue 1.1 crore general shares, each priced at Tk10. This will allow it to be listed on the SME platform.
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Only eligible investors can buy the company's shares.
Mostafa Metal will use the money as working capital and for issue management. It will also repay bank loans.
According to the company's financial statements, its earnings per share was Tk0.76 till December 2020 while the net asset value without revaluation reserve was Tk10.9.
The company cannot issue bonus shares for three years after it is listed on the SME platform, says a BSEC press release.
Those who have invested Tk1 crore or more in listed securities at market price will be considered qualified investors, including resident and non-resident Bangladeshis.
NBL Capital and Equity Management and Swadesh Investment Management are the issue managers of the company.
Mostafa Metal is going to be the second company to be listed on the SME platform.
Earlier, Nialco Alloys raised Tk7.5 crore from the capital market and was listed on the SME platform of Chittagong Stock Exchange (CSE). It debuted on the CSE on 10 June.
Mostafa Metal started its journey in 2008.
It produces PVC products, including high quality PVC doors, sheets, and ceilings, according to the company's website.
Situated in Rajbari, its factory is equipped with highly advanced machinery.
