BSEC orders special audit into Best Holdings over Tk3,000cr fund utilisation

The move aims to ensure compliance in the use of funds raised through IPOs, bonds and private placements.

The Bangladesh Securities and Exchange Commission (BSEC) has launched a special audit into Best Holdings PLC, the parent company of Le Méridien Dhaka, to examine how it utilised funds raised through various public and private channels.

The move aims to ensure compliance with securities regulations governing the deployment of capital raised via the company’s Initial Public Offering (IPO), corporate bonds and private placements.

In a formal notice issued recently, the BSEC invited proposals from audit firms through a tender process, setting 11 June as the submission deadline.

The selected firm will be required to submit a comprehensive report on the company’s financial activities within three months of signing the contract.

The audit will cover a substantial pool of funds raised by the hospitality giant, including Tk350 crore raised through its IPO in 2024 under the book-building method, where the institutional cut-off price was Tk35 and general investors received shares at Tk24.

Beyond the public offering, the regulator will also scrutinise Tk650 crore raised through bond issuances, which involved participation from Southeast Bank, Mercantile Bank, Trust Bank, NCC Bank and the Investment Corporation of Bangladesh (ICB), along with around Tk2,000 crore raised through private placements from individuals and institutional investors

The regulatory move comes amid mounting market concerns over Best Holdings, which is currently trading in the “Z” category on the Dhaka Stock Exchange (DSE) after failing to hold its annual general meeting (AGM) within the stipulated timeframe.

Investor sentiment has remained bearish following these developments, with the company’s shares closing at Tk14.80 on the DSE, a sharp decline from its listing price.

Source: The Business Standard