Confidence Power and Energy PLC (CPEPLC), a flagship concern of Confidence Group, plans to raise Tk400 crore through an initial public offer (IPO) under the book-building method to finance its renewable-energy expansion and strengthen its capital structure.
The proposed IPO is expected to be the first book-building IPO application under the Bangladesh Securities and Exchange Commission’s new Public Offer of Equity Securities Rules, 2025.
In a recent discussion on the company’s expansion plans, CPEPLC Chairman Imran Karim outlined the company’s strategy to gradually diversify beyond its existing HFO-based generation portfolio and build a longer-duration power business through renewable and other viable generation technologies.
Under the proposed Tk400 crore issue, Tk230 crore, or 57.5% of the proceeds, is earmarked for implementation of the 100MW Cox’s Bazar (North) solar power project. Another Tk102 crore, or 25.5%, will be invested in the 100MW Mongla solar project.
The company also intends to use Tk60 crore for partial repayment of bank loans and Tk8 crore for estimated IPO expenses, taking the total proposed issue size to Tk400 crore.
The final offer price and the corresponding number of shares to be issued will be determined through the regulatory and book-building process.
Tk4,159cr solar investment pipeline
The IPO forms part of a broader strategy to develop 400MW of solar generation capacity across Cox’s Bazar, Mongla in Bagerhat and Fatikchari in Chattogram under a 20-year arrangement with the Bangladesh Power Development Board (BPDB).
The portfolio comprises the 100MW Cox’s Bazar project, 100MW Mongla project and a 200MW project at Fatikchari. The three projects are estimated to require a combined investment of around Tk4,159 crore. The Cox’s Bazar project is estimated to cost Tk1,087.5 crore, the Mongla project Tk1,062.6 crore and the 200MW Fatikchari project around Tk2,008.7 crore.
Of the IPO proceeds, a combined Tk332 crore is proposed to be deployed in the Cox’s Bazar and Mongla projects, alongside additional funding from the existing sponsors and other financing sources.
The company is targeting commissioning of the solar power plants during 2028-29. The projects are planned under 20-year power offtake arrangements, which would extend the contractual life of the company’s generation portfolio well beyond the expiry of its existing HFO-based PPAs.
Moving beyond the existing HFO portfolio
CPEPLC currently operates, directly and through its wholly-owned subsidiaries, four HFO-based power plants with a combined installed capacity of 393.36MW across Bogura, Rangpur and Chattogram. The existing plants supply electricity to BPDB under long-term PPAs that currently run up to 2033-34.
Karim said the company’s longer-term strategy is not based solely on the continuation of those existing contracts.
Rather, CPEPLC intends to use its existing operational experience in the power sector to continually replenish and diversify its generation portfolio, allowing the business to remain operational beyond the tenure of individual PPAs.
The move into solar power is the first major step in that strategy. According to the company’s current development roadmap, CPEPLC intends to gradually evolve from a predominantly HFO-based generator into a broader energy company with exposure to renewable power, efficient gas-based generation, energy storage and related energy infrastructure.
The company is also evaluating future opportunities in gas-based generation alongside the development of dependable fuel infrastructure. Its longer-term objective is to build a portfolio where the expiry of one generation contract can be offset by the commissioning of new projects with fresh contractual lives.
Karim said accessing the capital market would also create an additional long-term financing avenue for the company, enabling it to raise capital for successive power projects rather than remaining dependent entirely on bank borrowing.
CPEPLC’s stated ambition is to build a generation portfolio exceeding 2,000MW by 2035, although the projects beyond its current development pipeline remain indicative and will depend on regulatory approvals, financing, project awards and partnerships.
Solar to diversify generation mix
The solar expansion would materially change CPEPLC’s generation mix, which is currently concentrated in HFO-based power.
The planned 400MW solar portfolio is estimated by the company to generate around 800 gigawatt-hours of electricity annually and avoid approximately 500,000 tonnes of carbon dioxide emissions each year, although both remain indicative estimates subject to final project configuration and operating performance.
Beyond diversification, the projects would provide the company with a new set of 20-year contracted revenue streams, reducing its reliance over time on the remaining tenure of the existing HFO PPAs.
The company’s strategy therefore centres on maintaining the existing operating fleet while progressively adding new projects as Bangladesh’s generation mix evolves.
For CPEPLC, the proposed IPO would serve not only as financing for two solar projects, but also as the company’s entry into the public capital market as a recurring source of equity financing for future growth.