Nialco Alloys’ QIO subscription begins 16 May
The high grade bronze and brass ingots manufacturer will raise Tk7.5 crore for business expansion
Nialco Alloys Limited's qualified investor offer (QIO) will begin on 16 May and continue until 20 May 2021 on an electronic subscription system under the fixed-price method.
Only eligible investors will be able to take part in the subscription process.
The Bangladesh Securities and Exchange Commission (BSEC) had earlier allowed Nialco Alloys Limited to raise Tk7.5 crore from the small capital platforms of local stock exchanges.
Each share of the company, which primarily manufactures high grade bronze and brass ingots, will have a face value of Tk10.
It plans to spend Tk4.86 crore on 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 the company.
According to a financial report, in the July-September quarter of 2020, company revenue was Tk20.56 crore, and net profit, Tk1.39 crore.
During this period, earnings per share stood at Tk0.91, and net asset value per share was Tk12.43 without revaluation reserve.
A source at Nialco said it 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 the products are exported to different countries, especially Japan and Korea, as raw materials. The company has no major competitor in the country.
