Confidence Cement to issue rights shares

Bangladesh cement producer Confidence Cement PLC has decided to issue rights shares to raise BDT1.29bn (US$m10.78m) for investment in an associate company named Confidence Cement Dhaka and repayment of term loans.

The Chittagong-based cement manufacturer will issue one right share for every three existing shares at BDT45 each, including BDT35 as a premium, as per the board’s decision at a recent meeting.

The company’s total number of ordinary shares is 86.25m, meaning the cement maker will issue 28.75m rights shares. The rights shares issuance is subject to approval by the shareholders at the annual general meeting (AGM), the securities regulator and compliance with the requirements embodied in relevant laws.

Confidence Cement has a 50 per cent stake in Confidence Cement Dhaka, which has a production capacity of 1.8Mta. According to the company’s latest report, Confidence Cement’s profit stood at BDT694m in the 9MFY23-24 (against BDT490m in 9MFY22-23) due to a declining cost of sales.