BSEC clears maiden IQIO, greenlights intraday trading in reform push

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Dhaka, July 14 - The Bangladesh Securities and Exchange Commission (BSEC) has approved the country's first Initial Qualified Investor Offer (IQIO), clearing footwear manufacturer Royal Footwear PLC to raise Tk 12 crore from qualified investors, in what regulators described as a landmark decision under the commission's new leadership.

The approval came at the 1020th commission meeting held on Tuesday at the BSEC's Agargaon office with its Chairman Masud Khan in the chair, according to a press release.

Under the IQIO, Royal Footwear PLC will issue 1.2 crore ordinary shares at a face value of Tk 10 each to qualified investors, raising a total of Tk 12 crore.

Officials noted this is the first IQIO approved since Masud took charge of the newly reconstituted commission.

Royal Footwear PLC is a fully export-oriented footwear manufacturer, which alongside supplying other countries, exports footwear to ROSS, a well-known US footwear company.

The company will use the proceeds to repay bank loans, expand retail operations, procure raw materials, and cover IQIO-related expenses.

According to the company's audited financial statements as of December 31, 2025, its net asset value (NAV) with revaluation stood at Tk 27.54 per share, while NAV without revaluation was Tk 15.74 per share. Earnings per share (EPS) for the half-year stood at Tk 0.82.

Prime Bank Investment PLC is acting as issue manager for the offer, while Prime Bank Investment PLC and EC Securities Limited are serving as underwriters.

In a separate decision, the commission gave consent in principle for stock exchanges to introduce Script Netting, also known as Intraday Trading, aimed at making capital market transactions faster, more efficient and modern.

The system will roll out once both stock exchanges put in place the necessary safeguards and arrangements, the commission said.

Separately, the commission approved a draft amendment to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025, which will soon be published in newspapers and on the commission's website for public opinion. - UNB