A new limit has been set for applications in the initial public offering (IPO) of Best Holdings, restricting investors to apply for shares ranging from a minimum of Tk 10,000 to a maximum of Tk 15 lakh. The Bangladesh Securities and Exchange Commission (BSEC), the capital market regulatory body, issued this order last Tuesday, reintroducing limits for the company's IPO application. The previous limit had been lifted, and the new one was reinstated in the latest order. Subscriptions for the IPO of Best Holdings, a company in the travel and leisure sector, are set to commence on January 14 and will run until January 18. The company aims to raise a total of Tk 350 crore from the market. Utilizing the book-building method, the base price for the company's shares has been established at Tk 35. Each share will be available to general investors at a discounted price of Tk 24, representing a 30 percent reduction from the base price. The company plans to issue 12 crore 50 lakh 55 thousand shares, with institutional investors acquiring 2 crore 65 lakh 74 thousand shares, 1 crore 57 lakh 58 thousand shares reserved for the company's officers and employees, and 7 crore 97 lakh 23 thousand shares set aside for general investors. Sources suggest that the company will amass around Tk 200 crore through IPO from common investors. With the minimum IPO application limit increased, it is expected that applications will be more efficiently processed. Presently, there is a minimum investment requirement in the stock market for IPO applications, and those with a minimum investment of Tk 50,000 are eligible to apply. The existing provision ensures that IPO shares are proportionally allocated among applicants, meaning that if you apply for an IPO, there is no chance of failure. As per the BSEC directive, applicants interested in Best Holdings can apply for a minimum of Tk 10,000 or its multiples. However, applications for shares exceeding Tk 15 lakh will not be accepted. Best Holdings is the owner of several companies, including the La Meridien Hotel located in Nikunj, the capital. BSEC granted approval for the company's IPO on October 31.
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