12 tech startups want to improve funds from public
Twelve technology-based startups want to enter the stock market so that you can raise funds.
The companies are: Sheba.xyz, Chaldal, Zantrik, Landknock, Hellotask, Bondstein Technologies, Brain Station 23, eCourier, Khaas Food, Divine IT, AnnaNovas It again, and CMED Health.
The companies already met with the currency markets regulator previous week to go over the matter.
"We spoke with the startups to improve their confidence and display that people are eager to permit them more rapidly listing on the sme plank," explained Rezaul Karim, spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).
The small-cap board, called the DSE SME, was rolled out on April 30 of 2019 with a view to helping small and moderate enterprises raise funds from the marketplace. Companies of this size had been previously shut right out of the process because of their lower turnover.
"The trading plank is ready, rules and regulations are prepared," Karim said
Various other companies also asked to be listed however the regulator had to reject those for a few unavoidable reasons, he said.
"The tech startups want to go public so we met them," he said, adding that if the firms meet all of the requirements, they could fast-track the listing process.
Small businesses should at least possess paid-up capital of Tk 5 crore to get detailed with the country's bourses. After listing, its paid-up capital ought to be at least Tk 10 crore.
Not all investors are allowed to trade on the SME table. The qualified investors happen to be: merchant bankers and portfolio managers, asset management firms, mutual money and collective expenditure scheme (CIS), stock dealers, banks, financial institutions, insurance firms, alternative expense fund managers, alternative expense funds, market manufacturers, issuer of detailed securities, resident or non-resident Bangladeshis, individuals having minimum net worth of Tk 1 crore, and other establishments as authorized by the commission.
Startup companies have enormous probable to grow so it is a good initiative for the marketplace to purchase them, said Arif Hossain, a professional investor.
Besides, the companies may also get finance due to this fact.
"However, the companies must have very good intentions," Hossain stated, adding that tech-giants just like Microsoft and Apple were once startups.
Among the 12 startups, some already are major businesses.
For case in point, Chaldal is currently the country's major online grocery shopping venture while Sheba.xyz, launched in July 2016, provides numerous products and services and answers to both service seekers and providers.
Waseem Alim, CEO of Chaldal, said they are keen to be detailed in the currency markets but some requirements may not be fit in for all startups.
"According to requirements, the paid-up capital shouldn't be greater than Tk 50 crore but many of us have higher capital than needed to run the business enterprise. So, the ceiling should be more than Tk 50 crore," he said.
"As many startups remain in loss for quite some time, we can not take part in the key market," he added.
You will find a requirement a company must make profits for 3 years at stretch to be listed in the key market.
"However, this is certainly a good step from the regulator as many startups have partners overseas," Alim explained, adding that talks with the BSEC are still in the primary stage.
Startups mainly give attention to their activities rather than formal accounting, which is a problem for concern managers, said a merchant banker, preferring anonymity.
Merchant banks are the issue managers when a enterprise enters the currency markets and given that they handle pubic money, they need to be cautious on all accounts.
But since some startups have great probable, the BSEC should make considerations and provide services to expedite their listing.
So far, two corporations have submitted their applications for listing over the SME board but were in the future rejected, the merchant banker said, adding that the plank is an chance of small companies.
