Best Holdings’ IPO roadshow held

Best Holdings Ltd, the parent company of hotel Le Méridien Dhaka, is going to offer an initial public offering (IPO) to raise Tk 350 crore from the capital market.

As part of the move, the company organised a roadshow, a requirement for a company to offer IPO, in the capital on Thursday evening.

Merchant bankers and portfolio managers, asset managers, stock dealers, foreign investors, and representatives from banks, financial institutions, insurance companies, alternative investment funds, and other relevant institutions, attended the event.

The company’s chairman, directors, managing director, and the country’s top bankers took part in the event.

The company would raise Tk 350 crore through an initial public offering (IPO) under the book-building method.

To this end, the company would offload 10 per cent of its total shares.

The IPO proceeds would be used for the repayment of high-cost debts and a resort project in Bhaluka.

Currently, the hospitality service provider has a paid-up capital of Tk 925 crore.

Best Hotels, a subsidiary of Best Holdings, is also constructing a five-star hotel in Mawna of Gazipur which is expected to be operational in 2023.

For the IPO process, Best Holdings has appointed ICB Capital Management Limited and Shanta Equity Limited as issue managers, and Prime Finance Capital Management Limited as the registrar.

In November 2020, Best Holdings applied to the Bangladesh Securities and Exchange Commission (BSEC), seeking approval for issuing 435 crore shares at Tk 65 each to raise Tk 283 crore under the direct listing method, although securities rules do not permit direct listing for any private companies.

The company’s sponsors hold a 52.01 per cent stake in the company while private placement shareholders own the remaining 47.99 per cent.

Among the private placement shareholders, four state-owned banks own 29.58 per cent of the company’s paid-up capital, according to the company’s previous filings for direct listing.

Of the state-owned lenders, Sonali Bank holds 8.83 per cent, Janata Bank 8.83 per cent, Agrani Bank 6.62 per cent, and Rupali Bank 5.3 per cent of the company’s paid-up capital.