DBL Group eyes stock market listing for two units, plans four to five more over next four years

One of Bangladesh's leading industrial conglomerates, DBL Group, is preparing to list two of its sister concerns on the country's capital market as part of a broader strategy to strengthen corporate governance and gradually bring more of its businesses under public ownership.

The two companies are Parkway Packaging and Printing Limited and Thanbee Print World Limited. Both have already signed agreements with a local merchant bank to manage their Initial Public Offering (IPO) process.

According to the group's roadmap, if the IPOs of these two companies are completed successfully, another four to five companies will be listed on the stock exchange over the next four years.

Speaking to The Business Standard, DBL Group Vice Chairman M A Rahim said the group is currently preparing to bring both companies to the capital market. He noted that a similar attempt was made around one and a half years ago during the tenure of the interim government, but the process stalled after the regulator raised several queries.

"We responded to all of them. However, as the process became prolonged, we realised it was unlikely to move forward at that time. So, we decided to put the initiative on hold," he said.

He said the group revived the IPO plan after the new government assumed office, encouraged by its positive stance on the capital market and the economy, as well as its call for large, well-managed companies to join the stock market.

"We expect to complete the necessary documentation by November. Our target is to complete the IPO of at least one company by December, while the other is expected to come to the market in February or March 2027," Rahim said.

More companies to follow

Rahim said the successful listing of the two companies would pave the way for a series of future IPOs from the group.

"The pharmaceutical company will not be brought to the market now because it is still a relatively new business and needs a few more years to strengthen its financial base. We also want to wait a little longer before listing our ceramics business. Before those, we plan to bring some of our textile companies to the market. We aim to list one textile company by the end of 2027, followed by others in phases. Over the next four years, we hope to list at least four to five companies," he said.

'Our primary goal is not fundraising'

Rahim said raising capital is not the principal objective behind the IPOs. Instead, the group is focusing on building a stronger corporate governance framework for the future.

"At present, our four brothers jointly manage the business. As the family grows, not everyone will necessarily be involved in management. We want these companies to be run by professional management. Family members who wish to participate in the business can do so, while those who do not can remain shareholders and benefit from the companies' growth and dividend income," he said.

He added that the group wants to establish a sustainable corporate structure that will ensure good governance over the long term.

"Once listed, the companies will have independent directors, regular regulatory oversight, annual financial reviews and a much stronger corporate governance framework," Rahim said.

He also confirmed that both companies will seek listing on the main board, not the SME platform.

Planned use of IPO proceeds

According to Rahim, Parkway Packaging and Printing plans to raise around Tk70 crore through its IPO. The proceeds will be invested in expanding its carton manufacturing facility.

For Thanbee Print World, however, the fundraising amount has not yet been finalised.

"A decision will be made next week. Instead of raising a large amount, we are also considering listing the company by offering only 5% to 10% of its shares to the public because our primary objective is to strengthen corporate governance," he said.

Two companies at a glance

Parkway Packaging and Printing Limited began commercial operations in 2008. The company has a paid-up capital of Tk45 crore and an annual turnover of around Tk140 crore. It manufactures cartons and packaging products primarily for Bangladesh's readymade garment industry and has a production capacity of approximately 35,000 cartons per day.

Thanbee Print World Limited, also established in 2008, has a paid-up capital of Tk45 crore and an annual turnover of around Tk200 crore. The company provides garment printing services with a daily printing capacity of approximately 250,000 pieces.

About DBL Group

Founded in 1991, DBL Group has grown into one of Bangladesh's largest diversified conglomerates. Its businesses span apparel, textiles, textile printing, washing, garment accessories, packaging, ceramic tiles, pharmaceuticals, dredging, retail and digital transformation services.

The group already has one listed company, Matin Spinning Mills PLC, on the Dhaka Stock Exchange.

If implemented as planned, DBL Group's listing strategy is expected to increase the presence of large industrial groups in Bangladesh's capital market, expand the pool of quality listed companies and promote stronger corporate governance and transparency, while creating new investment opportunities for investors.