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Best Holdings will have its first day of trading on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) today (Tuesday) under the 'N' category.
The 5th listed company in the 'Travel & Leisure' sector, the company has reported a consolidated net profit of Tk 716.62 million for the six months through December 2023.
Its consolidated post-IPO earnings per share stood at Tk 0.68 while the consolidated net asset value per share (NAV) at Tk 58.14 as of December last year.
Best Holdings, the owning company of Le Meridien Dhaka, received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in October last year for raising Tk 3.50 billion under the book-building method.
The cut-off price of its IPO (initial public offering) shares was fixed at Tk 35 through electronic bidding between November 20 and November 23 last year, a requirement for going public under the book-building method.
General investors, including non-resident Bangladeshis, however, got IPO shares at Tk 24 each at a 30 per cent discount on the cut-off price.
The IPO subscription was held from January 14 to January 18 this year. The IPO was oversubscribed by 3.77 times the worth of shares issued.
Recently, the DSE allocated the IPO shares among investors on the pro-rata basis which allows every applicant to get shares.
Each general investor got at least 86 IPO shares, while non-resident Bangladeshis received 101 shares against a deposit of Tk 10,000.
Of the IPO proceeds, the company will use Tk 1.76 billion for building and other civil works, Tk 1.15 billion for repayment of existing liabilities, and Tk 450 million for local machinery and equipment.
Shanta Equity and ICB Capital Management are jointly working as the issue manager of the company's IPO process.
Best Holdings is constructing a five-star hotel named Marriott Bhaluka, a chain of Marriott International Inc USA, 50-kilometre north of the Hazrat Shahjalal International Airport in the capital.
Incorporated in 2006, Best Holdings' paid-up capital is Tk 9.25 billion. It has two subsidiaries -- Best Hotels and Dhamshur Economic Zone.