Small Capital Board in the offingVenture Capital Assoc members meet BSEC chairman
FE Report | Published: August 13, 2018 22:22:10 | Updated: August 14, 2018 10:30:06
VCPEAB Chairman & General Partner of Fenox Venture Capital Shameem Ahsan, Secretary General of VCPEAB and Managing Director of BD Venture Limited Shawkat Hossain and, Founder and Managing Director of Maslin Capital Limited Waliul Maruf Matin seen in the meeting with Chairman of Bangladesh Securities and Exchange Commission (BSEC) Dr. M. Khairul Hossain on Monday
A Small Capital Board will be formed soon to facilitate small capital companies to raise funds through initial public offerings (IPOs).
Chairman of Bangladesh Securities and Exchange Commission (BSEC) Dr. M. Khairul Hossain disclosed this during a meeting with Venture Capital and Private Equity Association of Bangladesh (VCPEAB) at BSEC in the capital on Monday.
VCPEAB Chairman & General Partner of Fenox Venture Capital Shameem Ahsan led the delegation.
With the introduction of the Small Capital Board, a company can apply for IPO if it has a minimum existing paid-up capital of Tk 50 million, intends to raise its paid-up capital by at least Tk 50 million through Qualified Investor Offer (QIO) and after QIO, its paid-up capital stands below Tk 300 million.
Now to apply for an IPO, a company requires Tk 300 million as paid-up capital and profitability for past three years, among other criteria.
The BSEC chairman said, "We have come a long way in implementing the rules for Qualified Investor Offer by small capital companies. We have already issued the gazette and are in the process of forming the Board with stock exchanges by our side. This will also raise the depth of the stock market."
VCPEAB Chairman Shameem Ahsan, said "Access to finance is a major challenge for young entrepreneurs and startups due to unavailability of bank loans. It was difficult for IT firms to opt for IPO, as they have lower paid-up capital and focus on growth rather than profitability."
He said the formation of this Small Cap Board presents a viable exit strategy for Venture Capital Firms and Investment Bankers, making the technology industry more lucrative. "We are hopeful that their increased participation will benefit the thriving tech entrepreneurs and startups of Bangladesh," he added.
From BSEC, also present were Dr. Swapan Kumar Bala, FCMA, Commissioner; Shawkat Hossain, Secretary General, VCPEAB and Managing Director of BD Venture Limited; Mr. Waliul Maruf Matin, Founder and Managing Director of Maslin Capital Limited; and Mr. Nazmul Karim, Investment Manager, Aavishkaar Frontier Fund (Bangladesh).
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https://thefinancialexpress.com.bd/stock/small-capital-board-in-the-offing-1534177330
