Best Holdings Ltd, the parent company of hotel Le Meridien Dhaka, held a roadshow on Thursday as the company wants to raise Tk 3.50 billion from the capital market under book-building method.
The roadshow, a requirement under the book-building regulations before the price discovery of a company's initial public offering (IPO) shares, was held at the Le Meridien, attended by a number of eligible investors.
The company will offload 10 per cent of its total shares through IPO.
The IPO proceeds will be used to repay the high-cost debt (30 per cent) and the rest will be spent on the Bhaluka resort project and meeting IPO expenses.
"Best Holdings has been operating for 15 years. We do not want to limit our activities to Dhaka only. So, we have launched various projects at Bhaluka in Mymensingh," said its managing director Hasan Ahmed.
Incorporated in 2006, Best Holdings, a subsidiary of the Metro Group, started its business operation in 2009.
Best Holdings is also undertaking some big projects such as a 228-room Marriott Bhaluka, part of upscale hotel Marriott International.
Currently, the company's paid-up capital is Tk 9.25 billion, which will stands at Tk 12.75 billion after raising funds from the capital market.
The company's revenue stood at Tk 2.62 billion and net profit at Tk 1.02 billion while earnings per share stood at Tk 1.12 for the year ended on June 30, 2022.
The company's net asset value (NAV) per share was Tk 57.22 in the same period.
Currently, the company has a bank loan of Tk 1.76 billion.
ICB Capital Management Ltd and Shanta Equity Ltd are jointly working as issue managers.
Meanwhile, Best Hotels, a subsidiary of Best Holdings, is constructing a five-star hotel in Mawna, Gazipur, which is expected to open in 2023.
Amin Ahmed, chairman of Best Holdings, Dr Zaid Bakht, chairman of Agrani Bank, Md Abdus Salam Azad, managing director of Janata Bank, Md Abul Hossain, managing director of Investment Corporation of Bangladesh, also spoke at the event, among others.
In November 2020, Best Holdings applied to the Bangladesh Securities and Exchange Commission (BSEC), seeking approval for issuance of 43.50 million shares at Tk 65 each to raise Tk 2.83 billion under the direct-listing method despite the fact that securities rules do not permit direct listing for private companies.
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