Borak Real Estate — a concern of the Unique Group — is planning to raise Tk400 crore from the capital market through an initial public offering (IPO) under the book-building method.
On Wednesday, the company arranged a roadshow at the hotel Sheraton Dhaka where the company presented its business status and future plan to the eligible investors.
Of the IPO fund, Borak Real Estate will use Tk200 crore for constructing a seven-star hotel in Gulshan, Tk100 crore for Hotel Taj, and Tk100 crore for loan repayment.
According to its prospectus, the real estate company’s profit in the fiscal 2022-23 stood at Tk652 crore that was 20 times of what it was in the previous fiscal, despite its revenue declining to Tk74 crore from Tk94 crore year-on-year.
When questioned by institutional investors about the substantial growth in profit, the company explained that it earned Tk700 crore from fair value gain on revaluation. This addition to its profit is the reason behind the surge in profitability.
Noor Ali, Managing Director of Borak Real Estate, stated at the event that investors will not be deceived if they invest in Borak. He emphasized that neither he nor his family engages in dishonest practices. He acknowledged that some oppose his work out of jealousy and requested not to take these oppositions into account.