Best Holdings allowed to raise Tk350cr through IPO
Bangladesh Securities and Exchange Commission (BSEC) has allowed Best Holdings Limited, the operator of the five-star hotel Le Meridien in Dhaka's Nikunja 2 area, to raise Tk350 crore through an initial public offering (IPO) from the capital market.
The commission gave the approval in a meeting on Tuesday, according to a press release.
The company will offload 10% of its total shares through the IPO under the book-building method. The cut-off price of the shares will be determined by the book-building method, and general investors will get a discount on the cut-off price.
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The company will use 50% of the fund or Tk176 crore for building and other civil works, 33% or Tk115.60 crore for repayment of existing liabilities and around 13% for acquiring local machinery and equipment.
Engaged in the business of hotels and agro-based products, Best Holdings has established the Le Meridien Hotel in Dhaka, and also some agro-based projects in Noakhali, and Mymensingh's Bhaluka. It is in the process of raising fresh funds to build a resort in Bhaluka.
The cost of the total project, which will offer world-class hospitality outside the capital, is Tk1,586.91 crore, as per the prospectus. In this project, the IPO and the company's own fund will contribute Tk755 crore and the rest will come from loans.
According to the audited financial report of June 2023, the earnings per share (EPS) of the company stood at Tk1.24 and the year-weighted average EPS was Tk0.95.
Its net asset value per share was Tk32.26, excluding revaluation, and Tk56.34 with revaluation.
Shanta Equity Limited and ICB Capital Management Ltd are working as the issue manager of the company for its IPO process.
The company will not be able to declare dividends, approval, and disbursement before listing on the capital market.
