Introduction to SME

Small Capital Platform:

As companies grow, the initial external capital usually provided by friends and family, and angel investors, is often not sufficient to sustain their capital requirements; yet these companies are not necessarily ready for a traditional listing. Small Capital Platform of DSE, therefore, plays a vital role in the funding environment by bridging this gap for growing SME companies as they seek to develop their business through the use of external finance from capital markets. In addition to providing companies with access to capital, Dhaka Stock Exchange is committed to supporting the growth of companies through specialized department and systems that supports growing companies by providing access to the right resources and capital to scale up and achieve their aspirations.

Small Capital Platform is a dedicated growth market for small and medium sized companies. Small Capital Platform’s regulatory structure, tailored to the needs of growing companies, allows businesses to cost-effectively raise capital at admission and throughout their life on Small Capital Platform.

Why join the Small Capital Platform: the growth market of Bangladesh?

The decision to seek funding from public markets is an important step in the growth journey of a company. When considering taking this step, management teams should consider the following key benefits of an admission to a public market:

• Access to capital for growth and further development at the time of admission and through further capital offerings
• Opportunity for early-stage investors to realize some of their initial investment and help to broaden the shareholder base
• An objective market value on the company’s business
• Mechanism to encourage employees’ commitment and incentivise their long-term motivation and performance through more attractive share schemes
• Increased ability to make acquisitions by using quoted shares as currency
• Heightened public profile of the company, stemming from increased press coverage and analysts’ reports, and
• Enhanced company status with customers and suppliers.

In addition to these benefits that impact a company’s decision to join a public market, there are several additional reasons why AIM is consistently the public market of choice for growing companies.

DSE SME Highlights

Dhaka Stock Exchange (DSE) now offers a new and compelling avenue for SMEs around Bangladesh to access a deep pool of domestic capital. It is the fund growth initiatives to reduce debt burden, enhance corporate profile, create optimal value for SMEs.

• Dedicated market for small and medium sized companies
• Cost effective platform to raise capital
• Shortest possible time of listing
• Flexible regulatory environment in pre & post issue of fund raising
• Opportunity to migrate in the Main Board
• Opportunity to avail incentives
• Eased tax planning
• Unlocking hidden value

Alternative Asset Class for Investors

SMEs represent a diverse asset class of emerging companies from both traditional sectors and new age economy sectors like IT, IT Enable Service (ITES), organized retailing, education, entertainment, media etc. representing the new and modern face of entrepreneurs. In recent years, several SMEs scaled up their business rapidly and also demonstrated impressive bandwidth by successfully managing growth and cross border operations.

DSE SME will be an ideal platform for growing companies wishing to raise capital for capital expenditure, working capital, R&D, marketing, acquisitions or fulfillment of bonafide growth requirement.