Best Holdings IPO bidding starts 20 November
Bidding for the shares of Best Holdings Limited, owner of the five-star hotel Le Meridian in Dhaka, is scheduled to begin on 20 November and continue till 23 November this year.
The bidding will take place through the electronic subscription system of the stock exchanges where eligible investors will determine the cut-off price of each share under the book-building method. General investors will get a discount on the cut-off price.
Pension, provident and gratuity funds that have a minimum investment of Tk1.50 crore, and other investors who have maintained minimum investment of Tk3 crore in the capital market are eligible to bid for the initial public offering (IPO) shares of Best Holdings.
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Earlier, the Bangladesh Securities and Exchange Commission (BSEC) had allowed the company to raise Tk350 crore from the capital market through an IPO.
According to the BSEC release, Best Holdings will offload 10% of its total shares.
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.
Best Holdings was incorporated in 2006. Currently, its paid-up capital is Tk925 crore, according to the IPO prospectus. It has two subsidiaries – Best Hotels Limited and Dhamshur Economic Zone Limited.
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 at 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, approve, and disburse dividends before its capital market listing.
