STS holds road show to float Tk 75cr shares

STS Holdings Limited, the parent company of Apollo Hospitals Dhaka, held a road show on Monday at a city hotel as part of its move to float shares in the capital market under book building method.
STS initiated the move in order to broaden its investment base for the equity investment in a 346-bed international standard tertiary care hospital in Chittagong and to bring in stronger corporate governance and transparency within the entity, said STS Holdings officials at the road show.
Construction of the Chittagong hospital was estimated at Tk 490 crore. Of the cost, Tk 278 crore will be arranged from IFC and DEG in the form of long-term debt and the rest Tk 137crore from internal sources. The remaining Tk 75 crore will be pulled from the stock market, said a STS Holdings press release issued on Tuesday.
Issue price of STS Holdings’ IPO shares will be determined by the eligible institutional investors’ bidding under book building method.
The company earlier proposed to raise capital under fixed price method at an issue price of Tk 35 including Tk 25 premium on each Tk 10 share.
In January this year, the Bangladesh Securities and Exchange Commission, however, asked ten premium seeking companies including STS Holdings to follow the newly amended Public Issue Rules enacted in December last year that made book building method mandatory for premium seeking companies.
ICB Capital Management Limited and AFC Capital are the joint issue mangers while LankaBangla Investments will work as registrar to the Issue for STSHL’s IPO procedure.
STS Holdings chairman Bhagwan W Kundanmal presided over the road show where the entity’s managing director Khondoker Monir Uddin, chief executive officer R Basil and other directors and Investment Corporation of Bangladesh managing director Iftikar-uzzaman also spoke on the entity’s financial prospects.
Representatives from Dhaka and Chittagong stock Exchanges, ICB-CML, AFCCL, LBIL, eligible investors from various financial institutions attended the road show to make the price discovery of shares.

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