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Best Holdings to hold IPO roadshow today

FE REPORT | October 20, 2022 00:00:00

Best Holdings Ltd - the parent company of hotel Le Méridien Dhaka - will hold a roadshow today (Thursday), as the company plans to go public under the book building method.

The company will hold the event for eligible investors at the Grand Ballroom in Le Méridien Dhaka at 6:30pm, aiming to raise Tk 3.50 billion through initial public offering (IPO).

Investors such as merchant bankers and portfolio managers, asset managers, stock dealers, banks, financial institutions, insurance companies, alternative investment funds, foreign investors, and other institutions approved by the securities regulator are expected to join the event.

A road show is a requirement under the book building regulations before the price discovery of a company's share.

The company will offload 10 per cent of its total number of shares for the IPO. The IPO proceeds will be used to repay the high-cost debt and the rest will be spent for a resort project in Bhaluka.

Best Holdings, which is also a subsidiary of the Metro Group, was incorporated in 2006 and started business in 2009. Currently, its paid-up capital is Tk 9.25 billion, according to the IPO prospectus.

Best Hotels, a subsidiary of Best Holdings, is constructing a five-star hotel in Mawna, Gazipur which is expected to begin its operation in 2023.

In November 2020, Best Holdings applied to the Bangladesh Securities and Exchange Commission (BSEC), seeking approval for issuing 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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