Monday, April 29, 2024
Borak Real Estate Ltd, a sister concern of Unique Group, is set to raise Tk 400 crore capital from institutional investors, corporate houses, and high-net-worth individuals through an initial public offering (IPO) under the book-building method.
The company on Wednesday held a roadshow for potential investors – as part of the book building process – at the Sheraton Dhaka hotel in Banani, Dhaka.
Merchant bankers and portfolio managers, asset managers, stock dealers, banks, financial institutions, insurance companies, alternative investment funds, foreign investors, and other institutions approved by the securities regulator participated in the event.
The company’s Managing Director Mohd. Noor Ali, the key sponsor who has more than 44 years of business and entrepreneurial experience, said at the event, “Borak Real Estate Ltd shareholders will never lose.
“My family and I do not conduct business by cheating people.”
He added, “Borak Real Estate is working on a number of milestone projects that are a matter of pride for Bangladeshis. As a result, Borak is turning into an exemplary firm, which is on its way to become the country’s number one asset-based company.”
Mohd Noor Ali then said, “As a freedom fighter, I want to give a lot to this country. Everything we have should be invested in Bangladesh soil to bring in more foreign investment. This is the only way towards achieving economic freedom.
“So far, the members of my family have been the sole owners of this company. We have now decided to include you – the stakeholders – into the fold. When I am not around, you will have ownership alongside us. We will be here together systematically, instead of solely.”
He further mentioned, “We will build a large resort on 140 bighas of land in Kuakata close to the sea. We have already made plans to build a five star hotel and resort in Cox’s Bazar. Alongside these, we have a number of fresh plans centring the Sonargaon Economic Zone. “A 600 MW power plant is nearing completion. Besides, a resort project is underway in the Mawna Bhaluka area of Gazipur.”
At the roadshow, Bangladesh Merchant Bankers Association (BMBA) President and EBL Securities Managing Director Sayedur Rahman said, “Borak has a large volume of properties, and the management is good as well.
“There are good opportunities for business. Mohd Noor Ali is a successful entrepreneur, and he has no failures. He continues to work tirelessly for the economic development of Bangladesh.”
Borak has a successful expansion plan to expand and upgrade its existing facilities. These may vary depending on the implementation of relevant projects.
The utilisation of the proceeds of the IPO is as follows – investment in project Southpark (proposed 7-star hotel in Gulshan) Tk 200 crore, Investment in Hotel Taj and Vivanta Dhaka Project (5-star hotel project in Gulshan) Tk 100 crore, and partial loan repayment Tk 100 crore.
Borak Real Estate’s Nominated Director Saiful Islam, Advisor Dr Khondaker Showkat Hossain, CEO Gazi Md Shakhawat Hossain, Unique Hotel & Resorts’ CEO Shakawath Hossain, and its Director (Regulatory Affairs & Company Secretary) Md Sharif Hasan attended the roadshow.
Unique Group and Borak Real Estate Managing Director Mohd. Noor Ali, Advisor Dr Khondaker Showkat Hossain, and Borak Real Estate CEO Gazi Md Shakhawat Hossain attend the IPO roadshow among others, held in the capital’s Sheraton Dhaka on Wednesday – TBP Photo
Book building is a process through which an issuer attempts to determine the price to offer for its security, based on the demand from institutional investors.
The price of an IPO share is determined through automated bidding joined by financial institutions. The shares are then opened for the IPO participants at the cut-off price.
The principal operations of Borak Real Estate are – acquiring land to develop and constructing commercial and residential buildings to sell or to earn rentals. The company also purchases land for the construction of multi-story apartment buildings, shopping malls, and office spaces.
Borak Real Estate constructs buildings on a fully owned or sharing basis by virtue of an agreement with the owners of the land. It has two RMC units located at Patira-Khilkhet in Dhaka, and Nillnagar-Konabari in Gazipur, for selling Ready Mix Concrete (RMC).
The company’s revenue grew by a compound annual growth rate (CAGR) of 9 per cent from June 2019 to June 2023. In FY23, the profit after tax jumped to Tk 652 crore due to consideration of fair value gain on investment properties.
BMSL Investment Ltd and Swadesh Investment Management Ltd will be the issue managers for the company’s IPO.
Borak Real Estate was established in 1991. The company converted to a public limited company on August 28, 2010, and split its share value from Tk 100 to Tk 10 on July 12, 2010.
Its Managing Director Mohd Noor Ali is an eminent entrepreneur in the country, having involvement in real estate, the hospitality and tourism sector, the ceramic industry, power plants, manpower exports, banking services, housing finance and investment, human resource development, land development, and many other businesses.
He is the managing director of Unique Hotel & Resorts PLC and the Unique Group, a renowned business conglomerate in Bangladesh, and the chairman of Unique Meghnaghat Power Ltd.
