The Bangladesh Securities and Exchange Commission (BSEC) has rejected ACME Pesticides Ltd’s request to extend the deadline for utilising its initial public offering (IPO) proceeds until December 2027 after the company failed to meet regulatory conditions.
The rejection came after the company’s auditor flagged Tk7.16 crore in cash payments to suppliers and contractors as non-compliant with the conditions attached to the IPO approval.
ACME Pesticides raised Tk30 crore through its IPO. The company had initially received approval to utilise the funds until 30 June 2025 but failed to complete the utilisation within the extended period.
The company later sought shareholders’ approval for another extension until 31 December 2027 through an extraordinary general meeting held on 30 July 2025. However, BSEC rejected the extension request through a letter dated 24 February 2026.
According to an auditor’s certificate issued by Ashraf Uddin & Co on 4 August 2026, the company had utilised Tk21.86 crore of the IPO proceeds by 28 February 2026.
The spending included Tk1.44 crore for IPO expenses, Tk10.04 crore for factory building construction, Tk2.04 crore for electrical installation and Tk8.34 crore for new plant and machinery.
The auditor identified three cash payments as non-compliant. These included Tk3.04 crore paid for factory construction, Tk1.64 crore for electrical installation and Tk2.48 crore for plant and machinery, totalling Tk7.16 crore.
The auditor said Tk40.78 lakh of unused IPO funds initially allocated for issue expenses had been reallocated to working capital after shareholder approval.
The remaining unused IPO proceeds, including interest, stood at Tk9.68 crore as of 28 February 2026, according to the certificate.
The balance included funds held in Southeast Bank and BRAC Bank accounts, two fixed deposits of Tk3 crore and Tk5 crore with Southeast Bank, and interest income after tax deductions and bank charges.
The auditor also noted that some bank accounts and fixed deposits linked to the IPO funds were frozen in connection with a loan-related matter involving National Finance Ltd.
No further expenditure was made from the unused IPO funds after the previous utilisation report in February 2026, leaving no additional bills or vouchers available for verification, the auditor said.
