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Dominage Steel Building Systems seeks a nine-month extension to fully utilise its IPO (initial public offering) funds, aiming to complete the process by December of this year.
The listed company has decided to revise the IPO proceeds utilisation plan as it is yet to complete the allocation for acquisition of new plant and machinery.
"The board of directors has decided to modify the allocation of IPO proceeds designated for the acquisition of plant & machinery and electrical installations," said the company in a stock exchange filing this week.
Dominage Steel raised Tk 300 million in October 2020 from the capital market as per the fixed-price method, and was supposed to utilise the IPO proceeds within 24 months after receiving the funds.
The company allocated Tk 90.42 million for building and other construction, Tk 22.69 million for electrical installation and Tk 167.31 million for acquisition of new plant & machinery and remaining for IPO expenses, according to IPO prospectus.
Of the IPO allocation, the company is yet to utilise 27 per cent or Tk 54.82 million allocations for acquisition of new plant & machinery out of Tk 167.31 million.
The company will hold an extraordinary general meeting (EGM) on June 13 to obtain shareholders' approval for the time extension and the revised allocation of IPO proceeds, said the company. The record date for the EGM is set on June 6.
Earlier, the company also received a six-month extension for the utilisation of the IPO proceeds, but could not use the IPO funds due to the pandemic and Russia-Ukraine war even after taking approval from its shareholders and the regulator.
Company secretary Md. Jamir Hosen Chowdhury could not be reached for comments.