ADN gets extended time, permission from shareholders to use IPO fund

ADN Telecom received approval from shareholders to utilize the unused IPO funds by the end of next year.
The shareholders of the company in its 19th annual general meeting held Wednesday approved rearranging the unutilized IPO proceeds allocated for balancing, modernization, rehabilitation and expansion (BMRE), said the company in a filing with the Dhaka Stock Exchange.
The amount has been revised down to Tk 84.96 million from Tk 184.96 million.
Half of the remaining Tk 100 million will be invested in the Hi-Tech Park for developing manufacturing facilities and the other half for purchasing land and land development within the deadline, according to the filing.
Company Secretary Md. Monir Hossain said they were going to apply to the Bangladesh Securities and Exchange Commission (BSEC) for final approval.
ADN Telecom raised Tk 570 million in 2019 from the capital market under the book-building method to develop infrastructure, establish data centers and repay bank loans.
Of the total IPO funds, Tk 326.66 million was allocated for BMRE, Tk 120.60 million for loan repayments, Tk 93.24 million for data centre and remaining Tk 29.50 million for IPO expenses.
In April 2021, the securities regulator approved an application for alteration and two-year-time extension for utilizing the IPO proceeds, which will end on December 31 this year.
Each share of the company, which debuted in January 2020, closed at Tk 111.10 on Wednesday, losing 5.12 per cent over the previous day. Its shares traded between Tk 49.80 and Tk 159 in the last one year.
The company's consolidated earnings per share stood at Tk 1.01 for July-September 2022, increased from Tk 0.63 in the corresponding period last year.
The company declared a 10 per cent cash dividend for the year ended in June.

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