Confidence Power holds roadshow for proposed Tk400cr IPO

Confidence Power and Energy PLC has held a roadshow to present its proposed Tk400 crore initial public offering (IPO) under the book-building method, as the company seeks to raise funds from the capital market to finance two 100MW solar power projects in Chattogram and Bagerhat.

Held after a gap of nearly three years, the roadshow took place at the Radisson Blu Dhaka Water Garden in the capital yesterday (18 October), where the company presented its business operations, financial performance, proposed use of IPO proceeds, and future expansion plans to eligible investors and other capital market stakeholders.

Previously, on 14 October 2023, Techno Drugs Limited held a roadshow to raise Tk100 crore from the capital market through an IPO under the book-building method.

Under the proposed use of proceeds, Tk230 crore will be allocated to a 100MW grid-connected solar power project in Cox's Bazar (North), Chattogram, while Tk102 crore will be invested in Confidence and Doreen Power Limited to implement another 100MW solar project in Mongla, Bagerhat.

The company plans to use Tk60 crore to partially repay existing loans and Tk8 crore to cover estimated IPO expenses, according to its proposed fund utilisation plan.

Confidence Power and Energy holds a 60% stake in Confidence and Doreen Power Limited, which is undertaking the Mongla project.

The roadshow is part of the IPO process and does not itself mean that the company has raised the proposed funds. The latest information provided by the company confirms the roadshow and planned allocation of proceeds, but does not establish the final regulatory approval status or subscription schedule.

Financials

Confidence Power and Energy PLC's consolidated revenue fell 26% year-on-year to Tk1,770.85 crore in the financial year that ended on 30 June 2026, down from Tk2,399.73 crore in the previous fiscal year.

Despite the decline in revenue, the company's gross profit rose to Tk641.40 crore from Tk626.27 crore last year. Its net profit after tax stood at Tk477.41 crore, down 1.85% from Tk486.42 crore in FY2025.

Earnings per share (EPS) declined to Tk31.43 from Tk32.43 during the same period.

20-year power supply agreements

Confidence Power and Energy has signed power-supply agreements with the Bangladesh Power Development Board (BPDB) for both solar projects for 20 years from their respective commercial operation dates.

The projects are expected to help the company diversify its generation portfolio beyond conventional fuel-based power plants and expand its presence in renewable energy.

Imran Karim, chairman of Confidence Power and Energy, attended the roadshow alongside Director Rezaul Karim and Managing Director Khalid Islam. Tanzim Alamgir, managing director and CEO of UCB Investment Limited, also joined virtually.

Imran Karim, chairman of Confidence Power and Energy. Photo: Courtesy

Representatives of the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), eligible investors, auditors, merchant bankers, and other stakeholders also attended the event.

Group plans over Tk4,000cr investment in solar power

The proposed IPO is part of Confidence Group's broader plan to expand its renewable energy business. The group aims to invest more than Tk4,000 crore in solar power projects by 2028.

Beyond the two projects linked to the IPO, Confidence Enterprises and Confidence Power and Energy plan to invest around Tk2,000 crore in a separate 200MW solar power plant in Chattogram's Fatikchhari.

Confidence Power and Energy currently operates four power plants in Bogura, Rangpur, and Chattogram, with a combined generation capacity of 393MW.

The company aims to increase its operating capacity to around 1,000MW by 2029, 1,960MW by 2032, and 2,160MW by 2035.

Its long-term diversification strategy also includes gas-fired power generation, battery storage, and fuel infrastructure.

During the roadshow, investors had the opportunity to seek clarification on the company's financial position, project financing arrangements and future business prospects.

UCB Investment Limited is the issue manager for the proposed IPO, while Prime Bank Investment PLC is the registrar to the issue.