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The Information and Communications Technology (ICT) sector has been a key driver of Bangladesh’s economic momentum, with a domestic market size of approximately USD 1.6 Bn (Source: Bangladesh Investment Development Authority) in 2023, with around USD 0.6 Bn coming from exports (Source: Export Promotion Bureau) to the US, Europe, and Japan, while also exploring emerging markets in South-East Asia and Africa.
One of the key players in this industry, serving a global clientele across the US, UK, Canada, Denmark, and beyond, is now preparing for an Initial Public Offering (IPO). The upcoming IPO presents an opportunity for the firm to raise capital and drive further growth.
To navigate this process, LightCastle Partners was enlisted to conduct comprehensive due diligence and prepare an information memorandum. This document will outline the business model, financial health, market position, and prospects for potential investors.
Leveraging their expertise, LightCastle Partners conducted the due diligence and prepared the information memorandum to support the launching of the IPO. The process involved a comprehensive review and validation of the company’s financial, operational, legal, and market positions to ensure both transparency and regulatory compliance. The due diligence framework included the following steps:
After conducting a comprehensive analysis of the global and local ICT and software development sectors, the preparation of the Information Memorandum entailed an in-depth examination of the company’s history, business model, financial performance, and market position. Extensive market research was performed to draw comparisons with competitors and to highlight unique strengths.
Client feedback and case studies were collected to provide practical insights into the company’s capabilities and limitations. In addition, through client engagement and qualitative data analysis, business impact and client satisfaction levels were assessed. The final due diligence phase involved a comprehensive evaluation of internal factors such as management experience, organizational structure, market traction, growth strategy, and financial performance.
The post-IPO strategy is likely to focus on achieving strategic growth through partnerships and alliances within the next five years. Following that, the company plans to explore mergers and acquisitions over the next decade to strengthen its competitive advantage. An Employee Stock Ownership Plan (ESOP) will enable employees to acquire shares, potentially leading to employee control within ten years, with a management buyout also possible within twelve years.
The transition to a public entity is anticipated to draw significant local and international investment. This shift will also boost investor confidence in the wider ICT sector, thereby promoting additional investments in other tech companies. This IPO could set a benchmark for other IT firms in Bangladesh, potentially leading to a wave of similar public offerings that drive sector-wide growth.
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