Nialco Alloys Limited, the first company of the small and medium sized enterprises (SME) board of the stock exchanges, has been oversubscribed by 17.9 times.
309 qualified investors applied for company shares to the tune of Tk134.39 crore.
Earlier, the Bangladesh Securities and Exchange Commission (BSEC) had approved Nialco Alloys to raise Tk7.5 crore on the small capital platforms of the country's two stock exchanges.
The qualified investor offer (QIO) subscription of the company's shares began on 16 May and continued till 20 May over the electronic subscription system under the fixed price method.
Each share of the company will have a face value of Tk10.
Nialco Alloys manufactures high grade bronze and brass ingots.
It plans to spend Tk4.86 crore on manufacturing plant and machinery, and Tk2.56 crore on land development.
MTB Capital, a sister concern of Mutual Trust Bank Ltd, is the issue manager of Nialco Alloys.
According to a financial report in the July-September quarter of 2020, Nialco's revenue was Tk20.56 crore, and net profit was Tk1.39 crore.
During this period, earnings per share stood at Tk0.91, and net asset value per share, excluding revaluation reserve, was Tk12.43.
A source at the company said Nialco is a 100% export oriented company and the demand for copper products is increasing globally.
The company has a good supply of raw materials because government policy favours the sector.
Most of their products are exported as raw materials to different countries, especially Japan and Korea. The company has no major competitor in the country.