Apex Footwear To Raise Tk 500 Crore Through Redeemable Preference Shares For Loan Refinancing

Dhaka, September 29, 2026 — 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.

📋 Preference Share Details

• 💰 Total amount: up to Tk 500 crore
• 💰 Type: redeemable preference shares
• 💰 Purpose: refinance existing loans and reduce debt burden
• 💰 Approvals required: shareholders and BSEC
• 💰 Status: preliminary approval only; structure and terms 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.

📊 FY26 Financial Performance

The move comes as the company recommended a 30 per cent dividend for FY26:

• 💰 Dividend: 30% (15% cash + 15% stock)
• 💰 Earnings per share (EPS): Tk 7.91 (up from Tk 6.90)
• 💰 Restated net asset value (NAV) per share: Tk 355.25 (up from Tk 349.35)

👞 Apex Footwear: Company Profile

Apex Footwear is one of Bangladesh's leading leather and footwear manufacturers:

• 👞 Industry: Leather and footwear
• 👞 Products: leather shoes, footwear, leather goods
• 👞 Market: domestic and export
• 👞 Listed on: Dhaka Stock Exchange (DSE)
• 👞 Significance: one of the largest footwear manufacturers in Bangladesh

💼 Why Preference Shares?

Redeemable preference shares offer several advantages for debt refinancing:

• 💰 Lower cost of capital — typically lower interest rate than bank loans
• 💰 Balance sheet improvement — preference shares are classified as equity, improving debt-to-equity ratios
• 💰 Redeemable nature — can be redeemed (bought back) after a specified period
• 💰 No dilution of voting rights — preference shareholders typically don't have voting rights
• 💰 Fixed dividend — predictable payment obligations

💼 Bangladesh's Leather And Footwear Sector Context

Apex Footwear operates in Bangladesh's leather and footwear sector, which has significant export potential:

• 👞 Government roadmap — commerce secretary announced plans to move the leather industry up the value chain
• 👞 Savar Tannery Industrial Estate — relocated tanneries from Hazaribagh
• 👞 Export markets — Italy, South Korea, Japan, China, Hong Kong, Taiwan
• 👞 5,500 footwear factories — Bangladesh is the world's 8th-largest footwear producer
• 👞 9th-largest footwear consumer market globally

📜 Looking Ahead

For Apex Footwear, the Tk 500 crore preference share issue represents a strategic debt restructuring move — designed to reduce interest costs and improve financial flexibility. The company's improving EPS (Tk 7.91 from Tk 6.90) and growing NAV (Tk 355.25) demonstrate underlying operational strength despite the challenging economic environment.

The coming months will see the finalisation of the preference share terms, shareholder approval, and BSEC clearance — after which Apex Footwear can proceed with the debt refinancing and position itself for continued growth in Bangladesh's expanding leather and footwear sector.