Global Islami Bank seeks time extension to use unspent IPO funds

Global Islami Bank has sought regulatory approval to extend the deadline for utilising its unused IPO proceeds of Tk74 crore until November 2026.

The decision came at the bank's 11th Annual General Meeting (AGM), held on 19 August, where shareholders approved special resolutions regarding the use of IPO funds. 

According to the bank's statement filed on the Dhaka Stock Exchange (DSE), Tk73.82 crore of the IPO funds remains unspent. The shareholders approved a 24-month extension at the AGM to fully utilise the remaining IPO proceeds, moving the deadline to 9 November 2026.

The bank attributed the delay to the absence of sufficient potential investors in the SME sector, volatile conditions in the capital market, the Russia-Ukraine war, political unrest in Bangladesh, and conflicts in the Middle East.

Meanwhile, as part of the resolution, Tk31.98 lakh, originally earmarked for IPO expenses, will be transferred to the "Investment in SME" head, subject to approval from the Bangladesh Securities and Exchange Commission (BSEC) and other relevant regulators. 

Global Islami Bank raised Tk425 crore in capital through its Initial Public Offering in 2022, following approval by the BSEC in June of that year.

Of the IPO proceeds, Tk100 crore was allocated for SME investments, Tk268.5 crore for government securities and bonds, Tk50 crore for listed securities and bonds, and Tk6.5 crore for IPO-related expenses.

Following the announcement, its share price dropped by 3.57% to close at Tk2.70 on Wednesday.

Earlier, Global Islami Bank reported a loss of around Tk1,717 crore with a per-share loss of Tk16.56 in the first half of 2025. In the same period of 2024, it made a profit of Tk80 crore with an earnings per share (EPS) of Tk0.97.

The bank attributed the negative earnings per share during the period to an operating loss of Tk563.10 crore and provisioning of Tk1,070.43 crore against bad loans.

Under the S Alam Group's control, the bank reported profits until 2023. But after the change in political regime in August 2024, audits revealed a different picture.

Following the fall of the Awami League government on 5 August, the bank's board was dissolved on 29 August and replaced with five independent directors.

A special audit by the Bangladesh Bank and the bank itself revealed a stunning act of balance sheet manipulation, where the bank, despite incurring a substantial loss of Tk2,259 crore for 2023, falsely reported a net profit of Tk128 crore.

With the fresh audits, the reconstituted board appointed by the central bank rectified the previous financials and revoked the declared dividend of 5% cash and 5% stock dividend. 

Later, in 2024, the bank incurred a Tk1,308 crore loss with a per share loss of Tk12.62, and decided not to pay any dividends to its shareholders.