Two IT firms get BSEC’s nod to issue new shares through QIO
The Bangladesh Securities and Exchange Commission (BSEC) has approved two IT-based firms to raise funds from the capital market through a qualified investors offer (QIO) on the SME platform for business expansion.
The companies, Brain Station 23 and Doer Services, plan to raise Tk5 crore each from the capital market. The commission approved this in its meeting on Sunday (9 June).
Brain Station 23, a software company that developed the mobile digital banking platform City Touch, plans to issue 50 lakh shares at a face value of Tk10 each.
The company developed the first in-country mobile app, City Touch, a digital banking platform of City Bank, in 2017.
Lankabangla Investments Ltd is the company’s issue manager.
Brain Station 23 plans to spend Tk4.70 crore to procure computers and IT equipment to facilitate business expansion. This includes investments in laptops, desktops, MacBook Pros, network items such as switches, application servers, storage servers, transmission control protocols, and WiFi solutions. The procurement process will start after receiving the QIO fund and will be completed within 24 months.
Raisul Kabir, managing director of the company, told TBS, “Brain Station is aspiring to join the capital market to increase its business scope in the information technology sector at home and abroad, as well as to create opportunities for sharing the company’s capital shares among employees.”
He added that the development of the company in the ever-changing information technology sector, through the proper utilisation of capital from the market, can contribute significantly to the country’s economy from both local and international businesses.
Brain Station 23 is one of the largest IT solutions and software exporters in Bangladesh. With 17 years of experience since its inception in 2006, the company serves over 300 global and domestic clients across diverse industries and currently employs 700 full-time software engineers and other professionals.
Doer Services, an IT-based company, has also received approval to issue 50 lakh shares from the SME platform for expansion at a face value of Tk10 each.
Of this fund, the company plans to use Tk3.28 crore for product development and enhancement costs, Tk51 lakh to set up a cloud computing environment, Tk28 lakh for funding product penetration, and Tk68 lakh for the expansion of development facilities.
Doer Services was incorporated in 2014 but started operations in February 2015. It primarily provides an end-to-end agent banking ecosystem, including the technological infrastructure and the agent network.
Agrani Bank and the Insurance Development Regulatory Authority are the major buyers of the company. According to the December 2022 report, Agrani Bank contributed 78.06%, and IDRA contributed 21.17% of the company’s total revenue.
Alpha Capital Management Ltd is the company’s issue manager.
From July to December 2022, the company’s revenue stood at Tk28 crore, compared to Tk31.20 crore in the same period of the previous year.
Its net profit after tax decreased by 27% to Tk7 crore from Tk9.58 crore compared to the same period of the previous year.
