Confidence Infrastructure seeks Tk300Cr IPO to fund EV battery production
The company is targeting the electric motorcycle, three-wheeler, passenger car, bus and energy storage system markets.
Confidence Infrastructure plans to raise Tk300 crore through an initial public offering (IPO) to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.
The company has appointed UCB Investment Limited as issue manager for the proposed IPO. The two companies signed the issue management agreement on Tuesday at Confidence Infrastructure's corporate headquarters in Dhaka. The agreement was signed by Imran Karim, chairman of Confidence Infrastructure, and Tanzim Alamgir, managing director and chief executive officer of UCB Investment.
Speaking to The Business Standard, Karim said the group's affiliate, Confidence Batteries Limited, currently manufactures lead-acid batteries for the automotive, industrial, telecommunications, solar power and backup power sectors. The company now plans to enter EV battery manufacturing to meet growing domestic demand, reduce import dependence and build local capabilities in advanced battery production.
The company is targeting the electric motorcycle, three-wheeler, passenger car, bus and energy storage system markets. It also plans to invest part of the IPO proceeds in modern food production, processing and supply chains as part of its strategy to diversify into high-growth sectors.
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Subject to regulatory approval, UCB Investment will provide due diligence, financial and legal reviews, prospectus preparation and other IPO advisory services.
According to company officials, the IPO proceeds will finance EV battery manufacturing, new infrastructure and energy projects, debt repayment and investments in the food business.
Confidence Infrastructure reported Tk3,606 crore in consolidated revenue and Tk275 crore in net profit for FY25, with earnings per share of Tk19.92. It has a paid-up capital of Tk138.12 crore and an authorised capital of Tk500 crore.
The company operates across infrastructure development, manufacturing, storage, electricity, power generation, telecommunications and paint production. Its planned expansion into EV batteries is aimed at strengthening its position in the clean energy and future mobility market.
Confidence Group already has a listed company – Confidence Cement PLC, which has been trading on the Dhaka Stock Exchange since 1995. The cement maker recently declared a 10% cash dividend for FY25, reported Tk97 crore in net profit and was trading at around Tk69.10 per share. If approved, Confidence Infrastructure will become the group's second listed company.
Capital market analysts say large industrial IPOs have become increasingly rare, limiting investment opportunities in fundamentally strong companies. They believe Confidence Infrastructure's listing would deepen the market, while its planned investment in EV battery manufacturing could strengthen future earnings and support Bangladesh's emerging electric vehicle supply chain.
The IPO is subject to approval by the Bangladesh Securities and Exchange Commission (BSEC), which will review the company's audited financial statements, due diligence reports, prospectus, asset valuation and proposed use of proceeds before granting approval.
