RANGS Properties Ltd, a concern of RANCON Holdings Ltd, plans to invest Tk250 crore in expanding its portfolio of luxury residential and commercial projects, with funding to be raised through preference shares.
The real estate developer has already appointed Lion City Advisory Ltd as the arranger for issuing redeemable, cumulative and non-convertible preference shares, backed by mortgage and corporate guarantees.
Rancon Motor Bikes Ltd, the exclusive distributor of Suzuki motorcycles in Bangladesh, will provide the corporate guarantee for the issuance.
Sadat Hossain Bhuiyan, divisional finance business partner of the real estate division at RANGS Properties, told TBS that the company was exploring alternative long-term financing options to support its expansion.
"As these projects require significant upfront investment and longer development cycles, we are exploring alternative sources of long-term financing. Preference shares provide us with an opportunity to diversify our funding structure beyond traditional bank borrowing while better aligning financing with our project development and cash-flow cycles," he said.
Abdullah Al Faisal, director of Lion City Advisory, told this newspaper that the company preferred raising funds through preference shares rather than relying solely on bank loans, which often require mortgages and corporate guarantees.
The issuance will offer both conventional and Shariah-compliant investment options to attract individual and institutional investors, he added.
"There is substantial liquidity in Shariah-based products, which is why options have been made available for both individual and institutional investors interested in Shariah-compliant investments," he said.
According to the arranger's documents, the preference shares will carry an indicative dividend rate of 10.35%, subject to a floor of 10% and a cap of 12%. The rate will be reset every six months based on the five-year Treasury bond yield.
The company plans to issue 12.5 lakh preference shares at Tk2,000 each, maturing in five years (60 months).
The proceeds will be used to complete ongoing projects, partially repay existing loans and launch new real estate developments.
RANGS Properties has completed several residential and commercial projects across the country and currently has around a dozen projects under development, according to company and issue manager sources.
Revenue projected to surge
Company data shows that RANGS Properties had total assets of Tk1,934.19 crore and recorded revenue of Tk69.23 crore and net profit of Tk18.84 crore in 2025.
Its bank liabilities stood at Tk446 crore at the end of that year, spread across several private banks. Standard Bank had the highest exposure, at Tk129 crore.
According to the company's financial projections, revenue is expected to reach Tk474.9 crore in the year following the preference share issuance and fresh investment, while net profit is projected to rise to Tk89.9 crore.
The projections represent increases of around 586% in revenue and 593% in net profit from the 2025 figures.
Over the following five years, revenue is projected to reach Tk984 crore and net profit Tk246 crore, the data showed.
Al Faisal said the company had a strong asset base and that the planned investment was expected to significantly boost revenue and profitability.
Incorporated in 1990, RANGS Properties specialises in premium residential and commercial developments. The company has developed several properties in Dhaka, focusing on modern architecture, sustainability and quality living.
It is also pursuing sustainability initiatives under the RANCON Green Initiative as part of its strategy to expand its luxury property portfolio, according to the arranger's information document.