Unique Hotel and Resorts Ltd, the owner of The Westin Dhaka, has submitted its IPO prospectus to the stockmarket regulator revising its listing plan from book building to a fixed price method, officials said.
Under the revised plan, the five-star hotel will float 2.60 crore ordinary shares of Tk 10 each at an offer price of Tk 115, using the fixed price method.
Previously, under the book building method, the indicative price was fixed at Tk 185 per share.
The number of shares was also reduced from previously planned three crore primary shares under the book building method.
“Our IPO (initial public offering) process got stuck after the suspension of the book building system, although we had received institutional bidding consent from the regulator,” said Gazi Shakhawat Hossain, director (Finance) of Unique Hotel and Resorts.
The Securities and Exchange Commission, being instructed by the government, suspended the book building method in January this year following a price debacle in share prices.
Later, a high-profile government probe committee on the share market scam recommended modifying the book building rules, instead of scrapping it, as the system is well practised in other countries.
However, at that time analysts including the probe committee members alleged that the book building method was misused by many issuer companies in connivance with the regulator, auditors and issue managers.
Since the suspension, Unique Hotel has been waiting for the resumption of the book building system. “Pre-IPO private placement holders have also been waiting since then,” said Hossain.
“Seeing the delay in resumption of the book building method, we have decided to go public using the fixed price method, and already submitted the IPO prospectus to the regulator for consent,” he said.
Hossain said the IPO (initial public offering) proceedings will be used for business expansion and loan repayment.
Earnings per share of Unique Hotel, whose existing paid-up capital is Tk 230 crore, is Tk 5.85, while net asset value per share is Tk 77.62.
Set up in 2007, The Westin has emerged as one of the leading 5-star hotel in the capital city. The hotel, managed by the US chain hotels operator Starwood, has 241 rooms, six restaurants and five meeting venues.
Presently, the two state-owned entities — Bangladesh Services and Bangladesh Hotels — are listed on the Dhaka Stock Exchange. Bangladesh Services owns Dhaka Sheraton and Bangladesh Hotels owns the Purbani International.
Source: The daily star, 25 September, 2011