6 SME firms listed in 2022, five more in queue for 2023

In a year when the main market of the Dhaka bourse saw the least number of initial public offerings (IPOs) in five years, the small and medium-sized enterprises (SME) platform bagged six companies which raised Tk61 crore in total. 

Among them, Nialco Alloys raised Tk7.5 crore, Mamun Agro Products Tk10 crore, Krishibid Seed Tk11.60 crore, Star Adhesives Tk5 crore, BD Paints Tk12 crore, and Achia Sea Foods raised Tk15 crore.

Besides, five companies applied to the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk50 crore in total.

Back in 2021, four SME firms altogether raised Tk52 crore through qualified investor offers (QIO).

In the fiscal 2021-22, SME companies recommended impressive dividends – mostly 10% cash – for their shareholders. 

Of the six listed in 2022, Krishibid Seed recommended the highest 15%, whereas Nialco Alloys the lowest 5% cash dividends for their shareholders.

Currently, 15 companies are listed in the SME board of the Dhaka Stock Exchange (DSE), of which, five came from the now removed over-the-counter (OTC) market. 

At the end of 2022, overall transactions in the SME platform stood at Tk2,450 crore, which was 1.04% of the DSE's total transaction.

The SME market capitalisation stood at Tk1,590.21 crore.

Under Small Capital Companies Rules-2018, the BSEC approved the QIO with some amendments.

Then in September 2019, the bourses launched the SME platform to help businesses with small capital bases raise funds from the stock market. 

Investors with a portfolio size of minimum Tk30 lakh in the secondary market can participate in QIOs.

BSEC Executive Director Mohammad Rezaul Karim said the SME platform will help companies to maintain compliance and eventually be enlisted in the main board of the capital market.