The cut-off price of initial public offering (IPO) shares of Best Holdings has been fixed at Tk 35 each through electronic bidding process involving eligible investors.
The determination of this price took place over a 72-hour bidding window from November 20 to 23, as mandated by the book-building method for companies seeking to go public.
During the period, 97 eligible investors offered bids ranging between Tk 20 and Tk 35 for buying the company's shares, according to the data from the electronic subscription system (ESS) released on Wednesday.
Among them, 83 investors, the highest number, submitted bids of Tk 35 per share, four offered Tk 32, another four bid at Tk 30, while three bidders offered Tk 25.
For general investors, the IPO shares will be available at a 30 per cent discount on the cut-off price, resulting in a final price of Tk 24 per share.
Best Holdings, the owning entity of Le Méridien Dhaka, received the regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on October 10 this year for raising Tk 3.50 billion under the book-building method.
The company will use the money for building and other civil works, local machinery & equipment procurement for the luxury collection, repayment of existing liabilities and meeting the IPO expenses.
According to the audited financial report for the year ended in June this year, its earnings per share stood at Tk 1.24 while the year-weighted average EPS for the last five years was Tk 0.95.
Its net asset value per share was Tk 32.26 without revaluation surplus and Tk 56.34 per share with revaluation reserve.
Shanta Equity and ICB Capital Management are working as the issue manager of the company's IPO process.
Best Holdings will not be allowed to declare dividends, approval, and disbursement before listing on the capital market, according to BSEC conditions.
Best Holdings is constructing a five-star hotel named Marriott Bhaluka, a chain of Marriott International Inc USA, located 50-kilometre north of the Hazrat Shahjalal International Airport.
The under-construction hotel will have 209 deluxe rooms, 18 suites and a 2,000 square feet Marriott Suite.
Best Holdings inked an agreement with Marriot International Inc USA in June of 2021 for the hotel, which will also include four restaurants, a banquet hall, three meeting rooms and an infinity pool of 18,800 square feet.
The hotel, which is expected to launch next year, targets mainly to host the industrialists and foreign buyers who come to the industrial zone to place export orders.
Incorporated in 2006, Best Holdings has a paid-up capital of Tk 9.25 billion. It has two subsidiaries -- Best Hotels and Dhamshur Economic Zone.
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