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Trading of Krishibid Feed Ltd will commence tomorrow (Wednesday) on the SME Platforms of Dhaka Stock Exchange and Chittagong Stock Exchange.
Krishibid Feed will be the eighth listed company under the SME Platforms on both the bourses introduced earlier to ensure long term financing for the SME sector.
DSE trading code for Krishibid Feed is "KFL" and company code is 69004 while the CSE scrip ID is 32603 and scrip code is "KFL".
The Bangladesh Securities and Exchange Commission (BSEC) allowed the company's proposal for raising Tk 220 million through qualified investor offer (QIO) on September 5 as a small and medium enterprise (SME).
The subscription for shares of the company by the qualified investors held between October 10 and October 14. The company issued 22 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
Only qualified investors (QI) registered under the electronic subscription system of the stock exchange are allowed to trade under the SME Platforms.
Individual investors having a minimum of Tk 5.0 million of investment in the stock market are also allowed to trade shares of companies on the SME platforms.
The raised fund will be spent for building and other civil construction (Tk 50.02 million), plant & machinery (Tk 40.86 million), bank loan repayment (Tk 56.84 million), purchasing diesel generator (Tk 28.45 million), delivery van (Tk 40.69 million) and meeting QIO expenses (Tk 3.14 million), according to the prospectus.
Krishibid Feed will implement the works within 24 months from receiving the QIO fund, according to the abridged prospectus.
The company has reported earnings per share (EPS) of Tk 1.67 and net asset value without revaluation reserve of Tk 18.47 as per the company's financial statements ended on December 31, 2020.
Currently, Krishibid Feed's authorised capital is Tk 750 million and pre-QIO paid-up capital is Tk 275 million.
The company will not be allowed to issue any bonus shares within three years from the date of debut trading on the SME Platforms, as per the BSEC condition.
MTB Capital is the issue manager.
The principal activity of Krishibid Feed is to manufacture and sell/distribute all sorts of poultry feed, fish feed and cattle feed. Apart from that, the company can manufacture, distribute, export & import all kinds of Agro feed anywhere in Bangladesh and abroad.
The stock market regulator passed a rule in 2018 allowing companies with paid-up capital between Tk 50 million and Tk 300 million to raise funds from the stock market as small and medium enterprise (SME).