City Group seeks Tk 1,500Cr from capital market
City Group, one of the largest conglomerates in the country, plans to raise up to Tk 1,500 crore from the capital market, marking its first entry into Bangladesh’s equity market.
The fundraising may include an Initial Public Offering (IPO), private equity, preference shares, corporate bonds, Sukuk and other permissible capital market instruments, the group said in a press release statement on Thursday.
LankaBangla Investments PLC has been appointed as issue manager for the proposed fundraising, which is subject to applicable regulations and necessary regulatory approvals.
ONE Bank will work with LankaBangla Investments as banking partner and banker to the issue, providing permissible banking services and infrastructure in connection with the transaction.
An agreement in this connection was signed at City Group’s corporate head office in Dhaka yesterday.
The ceremony was attended by Md Hasan, managing director of City Group; and Farzana Rahman and Shampa Rahman, both sponsor shareholders and directors of City Group.
Mohammed Nasir Uddin Chowdhury, a director of LankaBangla Investments and managing director of LankaBangla Securities, and Muhit Rahman, managing director of ONE Bank, along with senior executives from the respective organisations, were also present.
Owning the brands Teer, Sun, and Natural, and with a business legacy spanning more than five decades, City Group has grown into one of the country’s major industrial groups and a supplier of essential food and consumer commodities.
Its operations span edible oil, flour, sugar, pulses, rice, feed and other consumer and industrial products.
Alongside other financing alternatives, City Group has decided to explore the capital market as a source of financing to support its future growth.
The move could also broaden the issuer base and encourage other established corporates to consider capital market financing.
The proposed fundraising is expected to be undertaken on a best-efforts basis over the next 12 to 18 months, subject to applicable laws and regulations, regulatory approvals, and market conditions, as per the statement.
