- The company wants to raise Tk100 crore on the capital market
- Its annual revenue was Tk250 crore
- Its paid-up capital is Tk45 crore
- Conion is its brand name
- IPO funds to be used for business expansion
Best Electronics Ltd, one of the fast-growing electronics retailers of the country, wants to raise Tk100 crore on the stock market to expand its business.
The company will issue an initial public offering (IPO) using the book-building method.
With the IPO proceeds, the company, a sister concern of Zaman Group, says it will modernise all four units of its two factories in Gazipur and Chuadanga.
Last year the company's annual revenue was around Tk250 crore, with paid-up capital of Tk45 crore.
The retailer began its journey in 2013 with an objective of delivering the home appliances of all major global brands to the high-end consumer group of Bangladesh.
Best Electronics, which had just 12 showrooms initially, has managed to open more than 120 showrooms across the country.
Over the years, it has secured authorised distributorship of almost all major brands of home appliances around the world, including: Hitachi, Sharp, Panasonic, Whirlpool, Philips, V-Guard, Toshiba, and Midea.
Best Electronics uses Conion as the brand name for its products. It produces fans, air conditioners, refrigerators, and other home appliances. The demand for Conion products is increasing on the market every day.
Best Electronics and Prime Bank Investment, issue manager for the company, have provided all the information.
Syed Asaduzzaman, managing director of the company, said, "We are working to support customers for a comfortable life. We strongly believe that, in Bangladesh, Best Electronics can provide customers with a massive collection of home appliances products."
"Our nationwide showrooms provide superior customer service. We are proud to introduce our service wing, Drooto, which is currently the number one company for installation or repair services in Bangladesh," he added.
He said Best Electronics wants to ensure corporate governance to make its business sustainable.
Prime Bank Investment has already signed an agreement with the company to provide issue management services.
The consumer goods industry sector is a fast-growing and a prominent industry in Bangladesh. It can be divided into two major categories – fast-moving consumer durables and fast-moving consumer goods.
In the fast-moving consumer goods segment, Singer Bangladesh and Walton Hi-Tech Industries are listed on the capital market. Both the companies, which are engaged in the consumer goods and home appliance businesses, have been receiving good responses from investors since going public.
Major players in these sectors are: Walton Group, Transom Electronics, Best Electronics, Jamuna Electronics, Rangs Electronics, PRAN-RFL (Vision), MyOne Electronics Industries, Super Star Group, Esquire Electronics, and Electra International. They assemble and sell products from foreign brands such as: Samsung, Whirlpool, LG, General, and Sharp.
The size of the fast-moving consumer goods industry is around Tk26,700 crore and the market is growing at 11% plus annually.