ADN Telecom Limited plans to raise up to Tk100 crore through preference shares to expand its business, even as annual earnings declined despite nearly 20 per cent revenue growth.
The company’s board approved the proposed fundraising and recommended a 10 per cent cash dividend for the financial year ended 30 June 2026 at a meeting on Tuesday, according to its disclosure.
The proposed preference shares would be cumulative and non-participating, with 50 per cent convertible into ordinary shares and the remaining 50 per cent redeemable. The issue requires shareholder and regulatory approval.
To accommodate the fundraising, ADN Telecom plans to increase its authorised capital from Tk200 crore to Tk300 crore, comprising Tk200 crore in ordinary shares and Tk100 crore in preference shares, each with a face value of Tk10.
The company would also amend its memorandum and articles of association, subject to shareholder approval.
ADN Telecom reported consolidated revenue of Tk215 crore in FY2025–26, up 19.69 per cent from a year earlier, driven by growth in consumer and information technology support services, alongside Tk3.77 crore in additional subsidiary revenue after eliminating transactions between group companies.
However, consolidated earnings per share (EPS) fell 10.2 per cent to Tk2.29 from Tk2.55, as declining prices for data and internet services, a higher proportion of low-margin sales, inflation and interest costs weighed on profitability.
Standalone EPS, excluding subsidiaries, dropped to Tk2.32 from Tk2.52.
Consolidated net operating cash flow per share declined to Tk5.14 from Tk5.75, while standalone cash flow per share fell to Tk4.58 from Tk5.47.
Despite weaker earnings and cash flow, consolidated net asset value per share rose to Tk34.11 from Tk32.82. Standalone net asset value per share increased to Tk34.12 from Tk32.80.
The company attributed the increase in asset value to accumulated profits and management of working capital, long-term investments and financing.
ADN Telecom has scheduled its annual general meeting for 17 December through a digital platform, with 17 November set as the record date for determining shareholder eligibility.
The proposed dividend, preference share issue and capital increase remain subject to the required approvals.
