Brain Station 23 Limited has announced its decision to withdraw the Qualified Investor Offer (QIO) from the SME board of the stock exchange, just one month before the scheduled subscription period. The IT firm’s move is attributed to business instability and concerns over the current environment for public investment.
Raisul Kabir, co-founder and CEO of Brain Station 23, explained the rationale behind the decision in a statement to The Business Standard. “The disrupted connectivity nowadays is risking our business and might impact our shareholders and investors,” Kabir said. “We believe it will not be the right step to take on the responsibility of managing public equity amid the business uncertainty.” Following a decision by the company’s board of directors, the QIO was withdrawn. The subscription for qualified investors was initially set to open from September 1 to 5. Brain Station 23 had previously secured approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 9 to raise Tk 5 crore.
Brain Station 23, which developed City Touch, the first in-country mobile app for City Bank, in 2017, plans to invest Tk 4.70 crore in procuring computers and IT equipment to facilitate business expansion. This includes laptops, desktops, MacBook Pros, network switches, application servers, storage servers, and WIFI solutions. LankaBangla Investments Limited is the issue manager for the QIO.
The company’s prospectus reveals that currently, one-third of its revenue is derived locally. However, it aims to reduce this to 24% over the next five years as part of its global expansion strategy. The company relies heavily on foreign clients, who currently account for more than two-thirds of their customer base. For the fiscal quarter from July to September of the last year, Brain Station 23 reported a revenue of Tk 33.13 crore, compared to Tk 27.71 crore during the same period the previous year. However, profit after tax slightly declined to Tk 8.21 crore from Tk 8.39 crore. As of September 2023, the company’s earnings per share stood at Tk 1.92, with a net asset value per share of Tk 19.28.
The draft prospectus lists Brain Station 23’s authorized capital at Tk100 crore and its paid-up capital at Tk 42.76 crore. Despite the current challenges, the company remains focused on its long-term growth and expansion plans.
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