Confidence Cement is initiating a rights offering to raise funds for its associate company, Confidence Cement Dhaka Limited, to manage increased investment costs. The company plans to issue one rights share for every three existing shares at Tk45 each, aiming to raise approximately Tk150 crore. This funding will help repay bank loans incurred for the Dhaka plant, which is under construction in Narsingdi with a capacity of 18 lakh tonnes per year, expected to start operations next year. The cement manufacturer, part of Confidence Group, has faced higher costs due to a surge in the dollar exchange rate, leading to an additional Tk250 crore expenditure. Consequently, the company will seek shareholder approval for the rights issue at its AGM on October 23, where it will also propose a 10% cash dividend and the disposal of its ready-mix concrete plant due to disruptions and declining demand. Despite the announcement, the company’s shares dropped over 9%.
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