Regulator makes way for Best Holdings to apply for IPO

The Bangladesh Securities and Exchange Commission (BSEC) has conditionally enabled Best Holdings Limited to apply for an initial public offering (IPO) by approving its paid-up capital that was raised through cash in over two years.

According to a clause of the Public Issue Rules 2015, a company cannot apply for an IPO if it raises paid-up capital through cash.

But recently, the BSEC has given Best Holdings an exemption from that clause, and now, the company can apply for an IPO.

In this regard, the company has to fulfil three conditions. One is to lock in all shares for three years, before issuing IPO shares; secondly, it cannot issue any share from 26 October 2022 until IPO; and lastly, it has to apply to the BSEC duly as per the public issue rules.

In June 2022, Best Holdings converted Agrani Bank's Tk125 crore investment in its bond into shares. And the company filed for its IPO in December of that year.

Best Holdings Limited's application to raise Tk350 crore from the stock market through an IPO was pending because of the company's non-compliance with related rules.

BSEC Executive Director Mohammad Rezaul Karim said the commission has given an exemption conditionally which will be published under the gazette very soon.

The issue manager of the company will place the application by fulfilling conditions and complying with the public issue rules to the commission, he added.

Public issue rules do not allow increasing paid-up capital within two years before filing for an IPO.  

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 Bhaluka, Mymensingh. It is in the process of raising fresh funds to build a resort in Bhaluka.

ICB Capital Management and Shanta Equity Limited are issue managers for the company's IPO.