Best Holdings' IPO subscription to open Jan 8
It will raise Tk 3.50b under book-building method
FE REPORT | Friday, 8 December 2023
The initial public offering (IPO) subscription of Best Holdings is set to begin on January 8 to raise Tk 3.50 billion from the primary market.
It will continue until January 14, according to its IPO prospectus published on Thursday.
The cut-off price of IPO shares was fixed at Tk 35 each through electronic bidding between November 20 and 23, a requirement for going public under the book-building method.
General investors, including non-resident Bangladeshis (NRBs), will get IPO shares at a 30 per cent discount on the cut-off price, meaning they will be able to buy shares at Tk 24 each.
The company will issue more than 125.05 million ordinary shares in total, with 26.57 million shares reserved for eligible investors at the bidding price of Tk 35 each.
More than 18.75 million shares will be issued to its employees while general investors, including NRBs, will get 79.72 million shares.
Best Holdings, the owning company of Le Méridien Dhaka, received the approval of the Bangladesh Securities and Exchange Commission (BSEC) on October 10 this year for raising the said amount.
Of the IPO proceeds, the company will use Tk 1.76 billion for building luxury resorts, Tk 1.15 billion for repayment of existing liabilities, Tk 450 million on machinery and equipment while the rest of the fund will be spent to complete the IPO procedure.
According to the audited financial report for the year ended in June this year, its earnings per share stood at Tk 1.24 for FY23, while the yearly weighted average of EPS for the last five years was Tk 0.95.
Shanta Equity and ICB Capital Management are working as the issue manager in the IPO process.
Best Holdings will not be allowed to declare dividends before listing in the capital market.
It is constructing a five-star hotel named Marriott Bhaluka, a chain of Marriott International Inc USA, 50-kilometre north of the Hazrat Shahjalal International Airport in the capital.
The hotel will have 209 deluxe rooms, 18 suites, and a 2,000 square feet Marriott Suite.
The hotel, which is expected to be inaugurated next year, aims to host industrialists and foreign buyers.
Incorporated in 2006, Best Holdings has a paid-up capital of Tk 9.25 billion.