Apex Footwear to raise Tk 500cr through preference shares

Apex Footwear Ltd plans to raise up to Tk 500 crore through redeemable preference shares to refinance existing loans, as the footwear maker’s total borrowing-related liabilities reached Tk 1,855.6 crore at the end of March, according to its unaudited financial statements.

Redeemable preference shares are a type of company stock issued to raise funds, with the issuing company agreeing to buy them back from investors after a set period. Preference shareholders receive fixed dividends before ordinary shareholders receive any profits.

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The proposed issue is subject to approval from the company’s shareholders and the Bangladesh Securities and Exchange Commission (BSEC), Apex said in a price-sensitive information disclosure on the Dhaka Stock Exchange (DSE) on Sunday.

A company official, speaking on condition of anonymity, said the board had given preliminary approval and discussions were still underway on the terms, structure and subscription process.

“The preference shares will be redeemable, and the proposal is being considered mainly to refinance the company’s outstanding loans,” the official said.

The company had Tk 1,479.4 crore in short-term borrowings, while long-term borrowings, including current maturities, stood at about Tk 376 crore.

The move comes as higher finance costs continue to put pressure on the company’s earnings. Apex Footwear paid Tk 78.7 crore in interest during the nine months to March, up from Tk 67.4 crore a year earlier.

The company’s revenue rose to Tk 1,559 crore during the nine months to March from Tk 1,369 crore a year earlier. However, net profit increased only modestly to Tk 8.92 crore from Tk 6.99 crore.

Apex Footwear’s total assets stood at about Tk 3,028 crore, while shareholders’ equity was Tk 692 crore at the end of March.

The company has also recommended a 30 percent dividend for the financial year ended June 30, 2026, comprising a 15 percent cash dividend and a 15 percent stock dividend.

Its earnings per share rose to Tk 7.91 in FY26 from Tk 6.90 a year earlier.