Best Holdings’ IPO share bidding begins Nov 20
The firm will raise Tk 3.50 billion
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The bidding for eligible investors (EIs) to explore the cut-off price of IPO shares of Best Holdings will begin on November 20, aiming to raise Tk 3.50 billion from the primary market.
The bidding, a requirement for going public under the book-building method, will continue until 5:00pm the next day, according to a stock exchange filing on Sunday.
After determining the cut off price, general investors will get IPO shares at a discount, at least 10 per cent.
The valuation report submission for eligible investors through electronic subscription system (ESS) of the exchanges will start at 10:30am on November 26 to finish at the same time on November 28.
Each eligible (EI) investor, who intends to submit an application, should maintain a minimum investment of Tk 30 million at the market price in matured listed securities, while the amount would have to be Tk 15 million for pension funds, recognised provident funds and gratuity funds as of November 12.
The minimum bidding value shall be Tk 2 million.
The Central Depository Bangladesh shall send a report to the stock exchanges regarding holding of EIs in listed securities and the exchange shall ensure the compliance in this regard.
Best Holdings, the owning entity of Le Méridien Dhaka, received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on October 10 for raising the said amount. It will invest the money in extending hospitality business projects outside the capital.
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 while 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 able to declare dividends before the listing, according to the regulator.