Confidence Power and Energy PLC, a concern of Confidence Group, has begun preparations to enter the capital market through an initial public offering (IPO) under the book-building method, renewing investor interest in the group’s track record in the stock market.

The power sector company plans to raise Tk 400 crore through the IPO to finance its expansion, particularly in renewable energy. It has scheduled a roadshow for institutional investors on Sunday, in line with regulatory requirements.

Confidence Power currently operates several furnace oil-based power plants with a combined generation capacity of 293 megawatts. The company plans to implement solar power projects with a total capacity of 400MW, partly on its own and partly through joint ventures with Dorin Power and Confidence Enterprise.

The upcoming IPO has attracted considerable attention, as Bangladesh’s capital market has seen relatively few new listings in recent years. However, concerns remain over the performance of companies that entered the market through book-building and fixed-price methods, many of which have struggled to deliver sustainable returns to investors.

Against this backdrop, the performance of Confidence Cement PLC (CCL), the group’s first listed company, has become a key point of discussion among investors.

Listed on the stock market in 1995, Confidence Cement was the first cement company in the private sector to enter Bangladesh’s capital market. Over the years, it has expanded its business through investments in various sectors and subsidiaries.

The company has traditionally been regarded as a blue-chip stock because of its consistent dividend payments and earnings performance. However, its decision to declare a dividend of just 10% for the 2024-25 financial year disappointed many shareholders.

Confidence Cement reported earnings per share (EPS) of Tk 11.23 for the year, the highest among listed cement companies, but declared a dividend of only Tk 1.12 per share.

Asked about the relatively low payout, Imran Karim, vice-chairman of Confidence Cement, told Orthosongbad that dividend decisions take into account the country’s economic conditions, future business plans, expansion opportunities and new investments.

He said retaining a portion of earnings helps the company expand its business while reducing risks, ultimately benefiting investors through sustainable long-term growth.

Karim noted that economic slowdown in recent years had reduced public and private infrastructure development, leading to a significant decline in cement demand. The company’s dividend decision was made with the possibility of further deterioration in business conditions in mind, he added.

“Over the past 30 years, Confidence Cement has paid an average dividend of 18%,” Karim said, adding that few companies in the market could match such a record.

According to Dhaka Stock Exchange (DSE) data, Confidence Cement has maintained a record of regular dividend payments since its listing. It initially declared a 5% dividend, which increased over time. In 2010, the company paid its highest dividend of 40%, comprising 25% cash and 15% stock dividends. In 2016, it declared a 37.5% cash dividend.

Over the three decades since its listing, the company paid dividends ranging from 20% to 25% in 15 years, while dividends ranged from 5% to 7.5% in five years. Since 2022, it has maintained a 10% dividend rate.

Its average dividend since listing stood at 18.54%, the second-highest among listed cement companies. Heidelberg Cement recorded the highest average dividend in the sector, although its earnings and dividend payments have been less consistent.

Confidence Cement has also demonstrated comparatively strong earnings performance. Among the seven listed cement companies, only Confidence Cement and LafargeHolcim Bangladesh avoided annual losses in each of the past five years.

Confidence Cement’s average EPS over the five-year period was Tk 8.11, the highest in the sector. Its EPS reached Tk 15.86 in 2021.

Heidelberg Cement ranked second, with an average EPS of Tk 4.28 over the same period. In contrast, Aramit Cement recorded the highest average loss per share of Tk 10.95, followed by Meghna Cement at Tk 7.70. Premier Cement posted an average loss of Tk 0.83 per share, while LafargeHolcim Bangladesh and Crown Cement recorded average EPS of Tk 3.92 and Tk 3.99, respectively.

Confidence Cement initially increased its capital through a 1:4 rights issue in the year of its listing in 1995, followed by two additional rights issues. In 2025, the company applied for another rights issue, but the then Bangladesh Securities and Exchange Commission, led by Rashed Maksud, did not approve any IPOs or rights issues during its tenure. Confidence Cement subsequently withdrew its investment from Confidence Cement Dhaka Ltd to meet its financial requirements.

The company currently has paid-up capital of Tk 86.25 crore, divided into 8.625 crore shares. Sponsors and directors hold 30.34% of the shares, institutional investors own 38.38%, and general investors hold 31.13%.

As Confidence Power and Energy moves closer to its proposed market debut, investors are likely to examine both its growth prospects in renewable energy and the financial track record of its group affiliate before making investment decisions.