1st company of SME board oversubscribed by 18pc

The first company of the SME board of the country's bourses has been oversubscribed by around 18 per cent.

Nialco Alloys got approval to go public in the new board last month.

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The company aims to raise Tk 7.5 crore from qualified investors by issuing 75 lakh shares at Tk 10 each.

In order to help the company meet its demand for long-term financing, the commission has approved the country's first quality investors offering.

A total of 309 eligible investors subscribed Tk 134.39 crore against its demand for Tk 7.50 crore.

The small-cap board, called the DSE SME, was rolled out on April 30 in 2019 with a view to facilitating small- and medium-sized enterprises to raise funds, which were shut out from the process before that for their lower turnover.

Small and medium enterprises have been suffering from financial deficiencies for many years although these firms have a huge impact on the country's gross domestic product and employment generation.

With this backdrop, SMEs had repeatedly urged the BSEC to give a chance to raise funds from the stock market.