Peninsula Chittagong Limited, a hotel service company, is going to debut at the country’s twin bourses today.
Each share has a face value of Tk10 and an additional premium of Tk20. Investors would be able to buy the shares in lots, each of which contains 200 shares.
It will be the fourth listed company under travel and leisure category at the Dhaka Stock Exchange.
With recent focus being put on developing the country’s tourism sector, the listing is expected to make the capital market more vibrant, according to brokers.
An amount of Tk165 crore mobilised through public offering will be used to construct a hotel named Airport Garden Hotel, which would cost approximately Tk141 crore.
Out of the remaining fund, Tk7 crore will be used for extension of the existing hotel, Tk13.2 crore to repay the company’s long-term loan and Tk3.6 crore to meet the IPO expenses.
According to the schedule of implementation, the extension of the existing hotel has already been completed while all the works for the Airport Garden Hotel will be completed in June, 2016.
During the year 2013, the hotel had a room occupancy rate of 81% of the total 44,652 rooms while 25% utilisation meets the break-even point.
The company’s net profit stood at Tk14.5 crore after tax in the year while it was Tk13.2 crore in the previous year. The rise of 10% resulted from an increase in revenue by 4% from room occupancy and lowering costs.
The demand of the hotel remains consistent throughout the year apart from the rainy season. Therefore, the quarterly reports should be analysed accordingly, said an analyst.
Source: Dhaka Tribune