After a two-year IPO drought, six companies have applied to raise a combined Tk612 crore from the capital market, including Scandex (BD), which would become the first 100% export-oriented garment manufacturer to go public in seven years.
The apparel maker, which exports T-shirts for men, women and children, has sought to raise Tk55 crore through an initial public offering (IPO), mainly to expand its factory and purchase machinery.
The last 100% export-oriented garment manufacturer to raise funds through an IPO was Ring Shine Textile, which secured Tk150 crore in 2019. However, the company has since struggled to keep its business running amid multiple challenges.
Several garment manufacturers raised funds from the capital market between 2014 and 2017 to expand their businesses, according to regulatory data. But no RMG company launched an IPO after Ring Shine until Scandex’s recent application.
Scandex has proposed an offer price of Tk13 per share, comprising a Tk10 face value and a Tk3 premium.
Tk55cr IPO plan for Scandex
Scandex (BD) Ltd, incorporated in 2001, is a 100% export-oriented ready-made garment manufacturer with its factory in Savar, Dhaka.
The company has an authorised capital of Tk150 crore and paid-up capital of Tk75.60 crore.
Its product portfolio includes men’s, women’s and children’s T-shirts, including round-neck, V-neck and long-sleeved varieties, as well as hoodies with kangaroo pockets.
Scandex currently has the capacity to produce around 15 lakh pieces a month. Its annual production rose from approximately 35 lakh pieces in 2019 to 1.70 crore in 2026, according to its prospectus.
IPO pipeline expands to Tk612cr
The prolonged IPO drought, which began in 2024, reflected economic uncertainty, global headwinds and reluctance among businesses to raise expansion funds from the capital market. The political transition in August 2024 was followed by a review and overhaul of public-offer regulations.
Following the introduction of revised rules that eased several requirements and procedural complexities, companies have begun returning to the market to raise capital.
Six companies have so far applied to the stock exchanges to raise a combined Tk612 crore – five through the fixed-price method and one through book-building.
Confidence Power and Energy has sought Tk400 crore through book-building, while five other companies have applied under the fixed-price method: Scandex (BD) for Tk55 crore, Alliance Finance for Tk34.65 crore, Parkway Packaging and Printing for Tk78 crore, Digicon Technologies for Tk30 crore and Protective Islami Life Insurance for Tk15 crore.
Alliance Finance
Alliance Finance, a financial institution licensed by Bangladesh Bank, was incorporated in 2003 as Alliance Leasing & Finance Company Ltd but began commercial operations in 2017.
It was established by local corporate sponsors and individual entrepreneurs, including representatives of Summit Group, Rangs Group, Alliance Holdings Ltd, Green Delta Insurance Company Ltd and Concept Knitting Ltd.
Its major shareholder is People’s Leasing & Finance PLC, a subsidiary of People’s Bank, Sri Lanka’s largest state-owned bank.
According to its prospectus, the partnership combines local market knowledge with Sri Lankan financial-sector experience to support the company’s goal of providing innovative, customer-oriented financial services in Bangladesh.
Confidence Power seeks Tk400cr
Confidence Power and Energy PLC has applied to the capital market regulator and stock exchanges to raise Tk400 crore through an IPO, marking a major development after more than two years without a book-building issue.
The power-sector company submitted its application after holding a 10-day roadshow as part of its IPO preparations, according to sources.
Techno Drugs was the last company to raise funds through book-building, securing Tk100 crore in early 2024. No further IPO applications were submitted following the fall of the Awami League-led government in August that year, as the capital market regulator also reviewed and amended the public-offer rules.
Under the revised rules, Confidence Power has set an indicative share price of Tk242. Eligible investors participating in the bidding process can place bids within a band of 25% above or below that price to determine the cut-off price.
The company plans to use the proceeds to develop two 100MW (AC) grid-connected solar power plants – one in northern Cox’s Bazar and the other in Mongla, Bagerhat – and partially repay its bank loans.
According to its prospectus, 83% of the proceeds will go towards land purchases and civil construction for the projects, 15% towards loan repayment and the remaining 2% towards IPO-related expenses.
Parkway Packaging seeks Tk78cr
Parkway Packaging and Printing Ltd, a concern of DBL Group, has applied to raise Tk78 crore through an IPO, offering shares at Tk40 each, including a Tk30 premium over the Tk10 face value.
The company plans to issue 1.95 crore shares under the fixed-price method and list on the stock market’s main board.
The proposed IPO would make Parkway Packaging one of the few companies to seek a premium through the fixed-price method. Dorin Power Generations and Systems last used this approach in 2016, raising Tk58 crore with a Tk19 premium per share.
According to its proposed IPO prospectus, Parkway Packaging plans to spend Tk65 crore on factory buildings and infrastructure, Tk10.65 crore on machinery and equipment, and Tk2.35 crore on IPO-related expenses.
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