Brain Station 23 and Doer Services Get BSEC's Green Light to Raise Funds

The big picture: The Bangladesh Securities and Exchange Commission (BSEC) has approved two IT-based companies, Brain Station 23 and Doer Services, to raise Tk 5 crore each through a qualified investors offer (QIO) on the SME platform. The commission approved this in its meeting on 9 June 2024. 

Why it matters: The funds will fuel business expansion for these tech firms, allowing them to invest in infrastructure, product development, and market penetration. Moreover, the listing of well-known companies like Brain Station 23 will likely create new interest and raise ambition among aspiring technology entrepreneurs in the country, contributing to the growth of Bangladesh’s fledgling technology sector. 

The details: 

Brain Station 23:

• A well-known IT solutions and software outsourcing company with a strong market reputation in Bangladesh and a growing number of international markets. 
• Plans to issue 50 lakh shares at Tk 10 face value
• Developed City Touch, the first in-country mobile app for City Bank's digital banking platform
• Will use Tk 4.7 crore to procure computers, IT equipment like laptops, servers, and networking gear
• Founded in 2006, Brain Station is one of Bangladesh's largest IT solution and software exporters, serving over 300 clients across markets. 
• Lankabangla Investments Ltd is the issue manager.

Doer Services: 

• Also issuing 50 lakh shares at Tk 10 face value
• Provides end-to-end agent banking ecosystem, including tech and agent network
• Major clients include Agrani Bank (78% of revenue) and Insurance Development Regulatory Authority
• Will use funds for product development (Tk 3.28 crore), cloud computing (Tk 51 lakh), market penetration (Tk 28 lakh), and facility expansion (Tk 68 lakh)
• Alpha Capital Management Ltd is the issue manager.

The bottom line: The capital injection will enable these homegrown IT firms to scale up operations, enhance offerings, and potentially contribute more to Bangladesh's economy through local and international businesses. At the same time, these developments will also encourage more technology companies to seek scale and opportunities to go public.