Sea Pearl Beach's subscription opens today

The company to raise Tk 150m through IPO

FE Report | April 23, 2019 00:00:00

The public subscription of Sea Pearl Beach Resort & Spa Limited opens today (Tuesday) to raise a fund worth Tk 150 million from the capital market.

The subscription for shares of the company by the eligible investors through electronic subscription system under fixed price method will be continued until May 6.

Sea Pearl Beach Resort & Spa (the owner of "Royal Tulip Sea Pearl Beach Resort & Spa Cox's Bazar") a Five Star Resort & hotel in Bangladesh, started its commercial operation from 17 September 2015.

The securities regulator - Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the company on February 19 to raise the said amount of fund.

As per the BSEC approval - under the fixed price method - Sea Pearl Beach Resort will offload 15 million ordinary shares at an offer price of Tk 10 each.

A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO shares.

For non-resident Bangladeshi (NRB) and foreign applicants, the required amount (per lot) for subscription is US$ 59.85 or GBP 45.50 or EUR 53.45, according to the Dhaka Stock Exchange (DSE).

The company will use the IPO fund for interior, finishing, furniture & fixture (157 rooms) 71.22 per cent, acquisition of land 17.77 per cent and bearing the IPO expenses 11.01 per cent.

According to the financial statements ended on June 30, 2018, the company's net asset value (NAV) per share stood at Tk 10.48 while the weighted average (three years) earnings per share (EPS) was Tk 0.41.

The company's pre-IPO paid-up capital is Tk 1.0 billion and authorised capital is Tk 2.0 billion.

Banco Finance and Investment Ltd and Prime Bank Investment Ltd are jointly working as the issue manager for the IPO process.

The principal activities and services of the company are: carrying out resort & hotel business, rooms and suites food & beverage.

After completing all procedures, it will be the 5th listed company in the 'Travel & Leisure' sector in the Dhaka Stock Exchange (DSE).

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