Ending two-year vacuum, Confidence Power steps in to raise Tk400cr

The issuer has set an indicative share price of Tk242.

Following an IPO hiatus of more than two years amid political changes and structural reforms to capital-raising regulations, Confidence Power and Energy PLC has broken the silence by filing an application with the capital market regulator and stock exchanges to raise Tk400 crore.

The power sector company submitted its application today (28 October), following a 10-day roadshow as part of preparations for its initial public offering (IPO), according to sources. It plans to raise the funds through the book-building method.

Techno Drugs was the last company to raise money from the market through book-building, securing Tk100 crore at the beginning of 2024. After the fall of the Awami League-led government in August 2024 amid mass student protests, no further IPO applications were submitted to raise capital.

The pause also coincided with a review of capital-raising regulations and amendments to the previous rules.

Under the new rules, Confidence Power has set an indicative share price of Tk242. Eligible investors participating in the bidding process to determine the cut-off price can bid within a band of 25% above or below the indicative price.

The company plans to use the Tk400 crore in proceeds to develop two solar power projects, a 100MW (AC) grid-connected solar power plant in northern Cox’s Bazar and another 100MW (AC) plant in Mongla, Bagerhat, as well as partially repay its bank loans, according to its prospectus.

It has allocated 83% of the IPO proceeds to land purchases and civil construction for the two projects, 15% to loan repayment and the remaining 2% to IPO-related expenses.

Of the proceeds, Tk230 crore will be invested in the 100MW solar project in Chattogram, while Tk102 crore will be invested as equity in the 100MW Mongla project, a joint venture with Doreen Power.

The company will use another Tk60 crore to partially repay loans from City Bank and BRAC Bank, while Tk8 crore has been earmarked for estimated IPO expenses.

Confidence Power and Energy began commercial operations in 2019, with a focus on setting up power plants to generate electricity for supply to Bangladesh’s national grid.

The company has four subsidiaries: Confidence Power Bogra, Confidence Power Rangpur, Zodiac Power Chittagong and Confidence and Doreen Power Ltd.

However, Confidence Group plans to invest more than Tk4,000 crore in 400MW of solar power capacity by 2028 as it seeks to diversify beyond heavy fuel oil and meet rising electricity demand.

Confidence Power and Energy will invest around Tk2,150 crore in two 200MW solar projects, with 100MW each in Chattogram and Bagerhat. The Bagerhat project, near Mongla, will be developed as a joint venture with Doreen Power, which will hold a 60% stake.

Confidence Enterprises and Confidence Power and Energy also plan to invest another Tk2,000 crore in a separate 200MW solar power plant in Fatikchhari.

According to financial statements audited by A Qasem & Co, Confidence Power reported revenue of Tk1,771 crore and net profit after tax of Tk477 crore in the 2025–26 fiscal year.

In the previous fiscal year, its revenue stood at Tk2,399.73 crore and net profit at Tk486.42 crore. The company projects that annual revenue will rise to Tk3,796 crore over the next five years, while net profit is expected to increase to Tk976 crore.

Confidence Power’s total assets stood at Tk5,163 crore as of June 2026, up 22% from a year earlier, according to its financial statements. The company had retained earnings of Tk2,665 crore, having retained its profits without recommending dividend payments to shareholders.

Its outstanding bank loans totalled Tk818 crore, including Tk300 crore borrowed by Confidence Power Bogra and Tk241 crore by Confidence Power Rangpur for project financing.

Source: The Business Standard