City Group plans to raise up to Tk1,500cr from capital market
The industrial conglomerate plans to explore IPO, bonds, Sukuk and other capital market instruments as it seeks fresh financing for future growth.
City Group, one of Bangladesh's largest industrial conglomerates, plans to raise up to Tk1,500 crore from the country's capital market as part of its financing strategy, marking the group's first entry into the equity capital market.
The proposed fundraising may involve an initial public offering (IPO), private equity, preference shares, corporate bonds, Sukuk or other permissible capital market instruments, according to a company statement issued today (13 August).
City Group has appointed Lanka Bangla Investments PLC as the issue manager for the proposed fundraising. The transaction will remain subject to applicable regulations and necessary regulatory approvals.
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The group, which has more than five decades of business operations, has a diversified presence in edible oil, flour, sugar, pulses, rice, feed and other consumer and industrial products.
According to the statement, City Group plans to explore the capital market alongside other financing options to support its future growth and financing needs.
The move could also broaden the issuer base of Bangladesh's capital market, create new investment opportunities and encourage established businesses to consider capital market financing as an alternative source of funding, it said.
Lanka Bangla Investments will lead the issue management and related capital market activities, while ONE Bank PLC will work as the banking partner and banker to the issue, providing permissible banking services and infrastructure for the proposed transactions.
An agreement in this regard was signed at City Group's corporate head office in Gulshan, Dhaka.
The signing ceremony was attended by City Group Managing Director Md Hasan; Sponsor Shareholders and Directors Farzana Rahman and Shampa Rahman; Lanka Bangla Investments Director and Lanka Bangla Securities Managing Director
Mohammed Nasir Uddin Chowdhury; and ONE Bank Managing Director Muhit Rahman, along with senior executives from the organisations.
The proposed fundraising is expected to be undertaken on a best-efforts basis over the next 12 to 18 months, subject to applicable laws, regulatory approvals and prevailing market conditions.
