Each general investor gets minimum 86 Best-Holdings' IPO shares
Non-Resident Bangladeshis get 101 shares against Tk 10,000
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Each general investor got at least 86 initial public offering (IPO) shares of Best Holdings while non-resident Bangladeshis received 101 shares against application of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Tuesday allocated the IPO shares of the company under the pro-rata basis, which allows every applicant to get shares.
The IPO subscription of Best Holdings was held from January 14 to January 18, which raised Tk 3.50 billion from the stock market under the book-building method.
The cut-off price of its IPO shares was fixed at Tk 35 through electronic bidding between November 20 and 23 last year --- a requirement for going public under the book-building method.
The general investors, including non-resident Bangladeshis, however, got IPO shares at a 30 per cent discount on the cut-off price at Tk 24 each.
Its IPO share oversubscribed by 3.77 times as the company received more than Tk 13 billion as against IPO shares worth Tk 3.50 billion, according to a press release issued on Tuesday.
Earlier, Best Holdings, the owning company of Le Méridien Dhaka, received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in October last year for raising the said amount under the book-building method.
Of the IPO proceeds, the company will use Tk 1.76 billion for building and other civil works of luxury collection, Tk 1.15 billion for repayment of existing liabilities, Tk 450 million of local machinery and equipment while remaining for IPO expenses.
According to the audited financial report for the year ended in June last 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 a revaluation surplus and 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 allowed to declare dividends, approval, and disbursement before listing on the capital market, according to BSEC conditions.
It is constructing a five-star hotel named Marriott Bhaluka, a chain of Marriott International Inc USA, located 50-kilometre north of the Hazrat Shahjalal International Airport.
Incorporated in 2006, Best Holdings has a paid-up capital of Tk 9.25 billion. It has two subsidiaries -- Best Hotels and Dhamshur Economic Zone.