Singer Bangladesh to Issue Tk 250 Crore Preference Shares

Singer Bangladesh Limited plans to raise Tk 250 crore through a private placement of 250 million preference shares to reduce its debt load.

According to company sources on Monday (October 26), the initiative remains subject to regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC).

The Company confirmed that Singer Bangladesh Limited, a subsidiary of Beko, the flagship brand of Türkiye’s Koç Holding, reported higher revenue but a wider pre-tax loss in the third quarter of 2026. The company generated revenue of Tk 4.4 billion during the quarter, up 6.54% from Tk 4.1 billion in the same period last year. However, sluggish demand in the consumer electronics market prevented sales from meeting expectations.

The company recorded a marginal improvement in gross profit margins, but rising costs of sales could not be fully passed on to consumers because of intense price sensitivity in the market. Operating profit remained largely unchanged quarter-on-quarter. Nevertheless, higher financing costs contributed to an increase in the company’s pre-tax loss.

Singer Bangladesh posted a pre-tax loss of Tk 709.4 million in the third quarter of 2026, compared with Tk 428.9 million in the corresponding period of the previous year. Net finance costs during the quarter stood at Tk 756.8 million.

To expand domestic manufacturing, reduce import dependency and strengthen local supply chains, Singer Bangladesh initiated the development of a modern, international-standard green factory at the Bangladesh Special Economic Zone in 2022. Covering more than 135,000 square metres, the facility is designed to enable the company to manufacture over 90% of its products locally. The project also aims to improve production efficiency and reinforce domestic supply networks.

However, project implementation costs increased significantly following substantial depreciation of the local currency. Ongoing geopolitical tensions in the Middle East and Eastern Europe, together with domestic political transitions, have also constrained economic activity. As the domestic economy has yet to stabilise fully, the company’s expected returns from the investment have been delayed. Management considers these challenges temporary and remains committed to implementing its long-term plans despite the adverse conditions.

To ease financial pressure, Singer Bangladesh’s Board of Directors has recommended raising up to Tk 2,500 million, or Tk 250 crore, by issuing a maximum of 250 million preference shares at Tk 10 each. Subject to approval from the Bangladesh Securities and Exchange Commission, the shares will be issued through private placement to the sponsor shareholder at the issuer’s discretion.

The proceeds will be used to refinance existing debt, reduce the company’s debt burden and meet working capital requirements. The company expects the proposed initiative to help strengthen its financial position and support ongoing business operations.

Singer Bangladesh said it remains focused on growth through local manufacturing, export development, product innovation and improved customer experience. Supported by its multi-brand strategy and continued investment in domestic production, the company aims to generate long-term value for customers, shareholders and the broader economy.

Arthosuchak/ Azam Ali Khan