GIB Fails to Use Full IPO Funds on time

Financially strained Global Islami Bank has applied for a two year renewal from the Bangladesh Securities and Exchange Commission (BSEC) to take advantage of the remaining Tk 740 crore from its Tk 4,250 crore of initial public offering (IPO). They are aiming for a new deadline of November 9, 2026.

GIB a fourth-generation Shariah-based bank, secured Tk 4.25 billion through its IPO in 2022, November. To invest in small and medium enterprises (SMEs), government securities, listed securities and bonds, and cover IPO-related expenses.

In accordance with, IPO fund expenditure report, the bank has invested Tk 3.51 billion as of June 2025. Among this, Tk 1 billion give into the SME sector, government securities Tk 2.15 billion and Tk 300 million into listed securities and bonds, while IPO related cost was spent on Tk 61.8 million
Apart this, Tk 740 million remains unutilised, including Tk 3.2 million initially allocated for IPO expenses. According the IPO target , deadline that expired on November 9, 2024. Shareholders of the bank approved to recollect the remaining IPO expense of Tk 3.2 million to the SME investment segment, subject to regulatory approval.
However, the bank applied for an additional 24 months to reuse the remaining funds, according to a filing with the Dhaka Stock Exchange (DSE).