Best Holdings Limited, the company who established the five-star hotel Le Meridian in Dhaka, has been added to the DSEX, the key index of Dhaka Stock Exchange (DSE).
In a press release, the DSE said the newly listed Best Holdings has met all the criteria for inclusion in the quarterly IPO addition for April. This addition will be effective from 12 April 2024, the release added.
The quarterly addition for the DSE Bangladesh Broad Index (DSEX) did not result in the removal of any existing company for the month of April.
Moreover, no new company qualified for inclusion in the DSE SME Growth Index (DSMEX) due to failure to meet the specified index methodology criteria.
Best Holdings' shares started trading on 6 February after raising Tk350 crore. Eligible investors acquired shares at Tk35 each at the cut-off price, while general investors secured shares at Tk24 per share.
The market capitalisation of Best Holdings stood at Tk3,886 crore as of yesterday, and its shares closed at Tk35.80 each at DSE.
Earlier, in February this year, the DSE removed 83 companies from the list of DSEX, while 16 new companies were added in the index after annual rebalancing.
According to the Bangladesh Index Methodology of DSE, designed and developed by S&P Dow Jones Indices a decade ago, companies must have a free-float market capitalisation of Tk10 crore to become a DSEX member.
However, the market capitalisation can drop to as low as Tk7 crore for an existing member that fulfils other criterias.
Other prerequisites for DSEX membership include ensuring a minimum trading of company shares over the six months before the rebalancing date, with a daily average trading turnover of no less than Tk10 lakh.
Moreover, shares must have been traded on at least half of each normal trading day over the past three months to qualify for inclusion in the DSEX.
Source: The Business Standard