GPH Ispat Expands to Hong Kong with $150 Million IPO

GPH Ispat Limited, one of Bangladesh's leading steel producers, has announced its intention to raise $150 million through an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX). This strategic move is aimed at financing a new project that will significantly enhance the company's production capacity and enable it to meet the growing demand for steel.

The decision to pursue the listing was made during a board meeting held on January 23, 2025. GPH Ispat has appointed leading firms to guide them through the listing process, ensuring a smooth and successful outcome. The advisory partners include PricewaterhouseCoopers Ltd (Hong Kong) and Price Waterhouse & Co Chartered Accountants LLP (India). These firms bring extensive experience and expertise, which will be invaluable in navigating the complexities of an international listing.

A high-level delegation led by GPH Group Chairman Mohammed Jahangir Alam is set to visit Hong Kong from February 4 to 6, 2025. During this visit, the delegation will engage in discussions with key stakeholders, including officials from the Stock Exchange of Hong Kong Limited, Altus Capital Limited (Merchant Bank/Issue Manager for capital raising), and Lego Corporate Finance Ltd (Underwriter). These discussions will focus on finalizing the details of the IPO and ensuring that all regulatory requirements are met.

The funds raised through the IPO will be used to establish a new state-of-the-art plant with an annual production capacity of 500,000 tonnes of billet and 500,000 tonnes of rod. The estimated cost of the project is $185 million, with the remaining $35 million expected to be financed through internal resources and other sources. This expansion project is part of GPH Ispat's long-term strategy to strengthen its market position and enhance its production capabilities.

The expansion aligns with GPH Ispat's vision to broaden its market footprint and enhance its corporate presence on a global scale. The listing on the HKEX is expected to provide GPH Ispat with greater access to international capital markets, boosting its financial strength and enabling it to undertake more ambitious projects in the future. The company hopes that the listing will also enhance its reputation and visibility among global investors, paving the way for further growth and development.

GPH Ispat has been a key player in the steel industry in Bangladesh, consistently delivering high-quality products and services. With this new expansion initiative, the company aims to not only meet the rising domestic demand but also increase its exports, contributing to the overall growth of Bangladesh's economy. The successful completion of the IPO and the subsequent expansion project will mark a significant milestone in GPH Ispat's journey towards becoming a leading global steel producer.