Master Feed Agrotec has received approval to raise Tk10 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.
Manufacturing and marketing poultry, fish and cattle feeds are the main activities of the company while it is also engaged in poultry and fish farming.
The company will issue 1 crore general shares, each priced at Tk10. This will allow it to be listed on the SME platform.
Only eligible investors can buy the company's shares.
Master Feed Agrotec will use the money as working capital and for issue management and it will also repay bank loans.
According to the company's financial statements, its earnings per share was Tk0.68 till 31 December 2020 while the net asset value without revaluation reserve was Tk14.08.
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 as qualified investors, including resident and non-resident Bangladeshis.
The company has a number of competitors in the sector. Of them, Aman Feed and National Feed Mills are listed on the stock market.
Besides, Quality Feed, Paragon Feed Mill, Nourish Poultry and Hatchery, Provita Feed Mill, New Hope Feed Mill (bd), Kazi Feed, ACI-Godrej Agrovet (Pvt), Aftab Feed Products, Advance Poultry and Fish Feed, CP Bangladesh Company, and Oryza Agro Industries Ltd are also the strong competitors of Master Feed Agrotec.
The company was incorporated in 2011 as "Master Hatchery and Poultry Feed Limited". Later in 2018, it was renamed as "Master Feed Agrotec Limited".
Asian Tiger Capital Partners Investments Ltd and NBL Capital & Equity Management Ltd are working as issue managers of Master Feed Agrotec Limited.