Doer Services PLC, an IT-based company, has filed an application to the Bangladesh Securities and Exchange Commission to raise Tk5 crore through qualified investor offer (QIO) from the SME platform of the bourses.
The company will raise the fund by issuing 5 lakh shares at a face value of Tk10 each to expand its business.
Of the fund, the company wants to use Tk3.28 crore for product development and enhancement, Tk51 lakh to set up a cloud computing environment, Tk28 lakh for funding product penetration, and Tk68 lakh for expanding its development facilities.
Doer Services was incorporated in 2014 and started operations in February 2015. The company’s principal products and services include software development, software or application customisation, outsourcing, digital data entry and processing, support, and software maintenance and call centre services. All of these products are marketed throughout Bangladesh.
It mainly provides an end-to-end agent banking ecosystem including the technological infrastructure and agent network. As a fintech based organisation, it manages several projects, such as SMS banking, agent banking, Doer pay point, unified messaging platform, learning management system, remittance platform, payments systems, and private cloud. It has no subsidiary.
The Agrani Bank, the Insurance Development Regulatory Authority, the Microcredit Regulatory Authority, and the National Board of Revenue are the largest customers of the company.
The company has lands in different areas of Sylhet. It currently operates business in rented premises in Dhaka.
Its authorised capital is Tk100 crore and paid-up Tk44.50 crore, according to the draft prospectus.
Genex Infosys, eGeneration, Daffodil Computers, and Infinity Technology International are the major competitors of the company. All but Infinity Technology are listed on the main platform of the bourses.
If the QIO plan succeeds, Doer Services will be the first technology company to be in the SME platform.
From July to December 2022, the company’s revenue stood at Tk28 crore, which was Tk31.20 crore in the same period of the previous year.
Its net profit after taxes came down 27% to Tk7 crore from Tk9.58 crore compared to the same period of the previous year.
During the period, its earnings per share was Tk1.57 and net asset value per share Tk14.32. Its retained earnings stood at Tk21.98 crore at the end of December 2022.
Alpha Capital Management Ltd is working as the issue manager of the company.
Demand for software and IT-enabled services is growing in the country as many local business entities alongside the government and other organisations are adopting automation. After overcoming the pandemic consequences, the sector has now been able to attract customers worldwide through IT-enabled services, said industry people.
The stock exchanges introduced their SME platforms in September 2019 to attract businesses with small capital bases to the stock market, and help them raise capital.
In September 2021, the Dhaka Stock Exchange (DSE) made its SME platform debut by trading shares of six companies. Currently, 17 companies are listed on the SME market.
In FY22, investors saw impressive cash dividends from SME companies. Most companies recommended 10% cash dividends for their shareholders.
However, the SME board share prices are considered to be volatile due to the small market capitalisation and the restrictions imposed by the regulator on small investors’ participation there.
One has to have an investment account worth at least Tk30 lakh before investing in the SME board.