Borak Real Estate held a roadshow on Wednesday as the company wants to raise Tk 4 billion from the primary market under the book-building method to finance its ongoing projects.
The roadshow was held at Sheraton Dhaka in the capital and a good number of eligible investors joined the event to get details about the company's financial performance and future investment plan.
A roadshow is a requirement under the book building regulations before the price discovery of a company's initial public offering (IPO) shares.
Companies that want no premium over face value for their primary shares go public under fixed-price method, while premium-seeking firms need to follow the book-building method, according to the public issue rules.
A concern of Unique Group, Borak Real Estate will raise the fund to bolster its financial status, while creating opportunities for investors to be part of equity investment.
Mohammad Noor Ali, managing director of Unique Group, said Borak Real Estate was a milestone venture and it would be the second entity of the group to be listed on the stock exchanges.
The first company, Unique Hotel & Resorts was listed in 2012.
Mr Ali said that whoever would invest in Borak Real Estate would never be disappointed.
"We will do everything so that investors will get the highest return on their investment."
Mr Ali said the realtor was building an eco-resort on a piece of 140 bigha land in Kuakata for hosting sea-bound tourists. Tour programmes from Kuakata to the Sundarbans will be launched in the near future.
Moreover, the company has already planned to build a five-star hotel and resort in Cox's Bazar. Apart from these projects, there are new plans around Sonargaon Economic Zone, said the Unique Group chief.
Established in 1991, Borak Real Estate has built urban luxury apartments and commercial spaces. The company also has two Ready Mix Concrete (RMC) units.
Borak has constructed modern buildings, including The Westin (24-storey) in Dhaka's Gulshan, Unique Trade Center (20-storey) in Panthapath and Red Crescent Borak Tower (20-storey) in Eskaton.
Among the ongoing projects, the company is constructing a 21-story commercial building called Borak Acropolis in Gulshan, with six basements. It is also undertaking the construction of a proposed 7-star hotel, South Park, which will be a 24-story building, with eight basements.
To finance these projects and partially repay loans, the company intends to raise funds by issuing shares under the book-building method.
Its revenue dropped 21 per cent year-on-year to Tk 745 million in FY23. But net profit jumped more than 22 times year-on-year to Tk 6.52 billion due to consideration of fair value gain on investment property.
The company said its land, space and building projects revalued in March this year. These land, space and building projects revolutions using the fair market price as at its location and conditions. The revaluation surplus stood at Tk 323 million and fair value gained over Tk 7 billion. This revaluation has been recognized in the books of the FY23.
BMSL Investment and Swadesh Investment Management are working as joint issue managers for the IPO, while Imperial Capital is acting as the registrar.
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