Apex Footwear to raise Tk 500 crore through preference shares

Apex Footwear has decided to raise up to Tk 500 crore through redeemable preference shares to refinance its existing loans and reduce its debt burden.

The company's board approved the proposal at a meeting on September 26, according to a price-sensitive information disclosure.

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The proposed issue will require approval from the company's shareholders and the Bangladesh Securities and Exchange Commission (BSEC).

The board also approved amendments to the company's memorandum and articles of association, subject to shareholder approval.

However, the structure and terms of the proposed preference shares have yet to be finalised.

A company official, speaking on condition of anonymity, told The Daily Star that the board had only given preliminary approval and that discussions were still under way 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.

However, the official declined to disclose further details until the proposal is finalised.

The move comes as the company 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.

Apex Footwear's earnings per share rose to Tk 7.91 in FY26 from Tk 6.90 a year earlier. Its restated net asset value per share increased to Tk 355.25 as of June 30, from Tk 349.35 a year earlier.