Stocks
BSEC Restricts General Investors in Best Holdings IPO Allotments
The Bangladesh Securities and Exchange Commission (BSEC) has introduced restrictions on general investors regarding the allotment of initial public offering (IPO) shares from Best Holdings, the company that owns the renowned Le Méridien five-star hotel.
In a letter issued to the company on Tuesday, the commission specified that “the subscribed limit for the application amount is Tk10,000 or its multiples, but not exceeding Tk15 lakh.”
On December 13 of the previous year, the regulatory body had lifted the restriction on IPO applications by general investors for Best Holdings. This change allowed investors to apply for shares without any value limitations, as the standard Tk10,000 cap on IPO applications had been removed by the regulator.
Following the adjustment in IPO applications on December 30, 2023, the Dhaka Stock Exchange (DSE) conducted an awareness program with brokerage house representatives, instructing them to adhere to the new guidelines.
This decision by the commission generated mixed reactions among general investors. The modification now permits an investor, under a single beneficiary owner’s (BO) account, to apply for a maximum of Tk15 lakh, starting at Tk10,000 for subscribing to Best Holdings’ shares.
According to BSEC, an investor aiming to apply for an IPO in the primary market must have a minimum investment of Tk50,000 in the secondary market.
In October 2023, Best Holdings received BSEC approval to raise Tk350 crore through an IPO under the book-building method from the capital market.
The IPO subscription period will commence on January 14, 2024, and continue until January 18.
To apply for the company’s IPO shares, Bangladeshi resident general investors are required to have a minimum investment of Tk50,000 in matured listed securities, and non-resident Bangladeshis (NRBs) need Tk1 lakh as of January 3, 2024.
Earlier, the electronic bidding for the company’s shares took place between November 20 and November 23, where the cut-off price was fixed at Tk35 each.
Qualified and institutional investors, including mutual funds, will purchase 25% of the company’s shares at the cut-off price, while individual investors can acquire the remaining shares at a 30% discounted price of Tk24 each.
Best Holdings plans to allocate 50% of the fund (Tk176 crore) for building construction and other civil works, 33% (Tk115.6 crore) for the repayment of existing liabilities, and around 13% for local machinery and equipment acquisition.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
