A delegation of Venture Capital and Private Equity Association of Bangladesh (VCPEAB) paid a courtesy visit to Dr. M. Khairul Hossain, Chairman of Bangladesh Securities and Exchange Commission (BSEC) at the BSEC office in capital on August 13. VCPEAB chairman & General Partner of Fenox Venture Capital, Shameem Ahsan led the delegation.
In the meeting, it was discussed that the Small Capital Board will be formed soon, within 1 -2 months to facilitate small capital companies to raise funds through IPO.With the introduction of the Small Capital Board, a company can apply for IPO if it has a minimum existing paid-up capital of 50 million BDT, intends to raise its paid-up capital by at least 50 million BDT through Qualified Investor Offer (QIO) and after QIO, its paid-up capital stands below 300 million BDT. Previously, to apply for an IPO, a company required 300 million BDT paid-up capital and profitability for past 3 years among other criteria.
Dr. M. Khairul Hossain, Chairman, BSEC 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 Boardwith Stock Exchange by our side. This will also enable an increased capital market in Bangladesh, bringing about a positive turn in the investment scenario.”
VCPEAB Chairman, Mr. 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. 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 our thriving tech entrepreneurs and startups.”
From BSEC, Dr. Swapan Kumar Bala, FCMA, Commissioner; Hasan Mahmood, Executive Director; Md. Mahmudul Hoque, Director and Md. Emdadul Haque, Deputy Director were also present. Zia U Ahmed, Vice President, VCPEAB and Chairman of VIPB Asset Management Company Limited; 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) joined the delegation from VCPEAB.