The board of Dominage Steel Building Systems has decided to sell its ownership stakes to Akij Resources and two individuals, even as the company's stock has rallied over the past eight months.
The decision was disclosed on the company's website on Saturday.
According to the price-sensitive information (PSI), Dominage Steel will sell 30 per cent, or 30.78 million shares, of the company at a negotiated price through an off-market transaction.
In fact, the entire holdings of the existing sponsor-directors will be handed over to Akij Resources and two individuals, namely Sheikh Jasim Uddin and Faria Hossain.
"Upon completion of the regulatory process and approval from BSEC, a new board of directors will take over the management and operations of the company," said the PSI.
No company of the Akij Group has yet been listed on the stock exchanges. So, it will enter the secondary market through the acquisition of Dominage Steel.
Meanwhile, the stock of the steel manufacturer has climbed remarkably over the last eight months, although it has a negative P/E (price-to-earnings) ratio and one of its factory units has remained shut.
It went from Tk 9.9 per share on June 22 last year to Tk 60.60 per share on Thursday, a whopping 512 per cent surge.
Neither the company's operational status nor its financial performance supports such a stock price hike. The company incurred losses in Q1 and Q2 of FY26.
In response to the DSE's query about the stock's rally, the company said there was no undisclosed price-sensitive information.
Industry insiders say many companies previously did the same thing - they denied having any undisclosed information, but later disclosure of a decision like the one taken by the board of Dominage Steel made it clear why the stock price had surged.
A company, however, cannot publish price-sensitive information until a decision is finalised. But there is a time gap between a discussion taking place and a decision being finalised. Insiders engaged in the process often play a role in influencing the stock price.
On its website, Dominage Steel said Akij Resources is one of the largest conglomerates in Bangladesh, "with a significant footprint in the steel and construction industry through its subsidiaries."
It also said that after the transition to new management, Dominage Steel is expected to fully resume and optimise its production activities, addressing recent operational challenges.
"The board believes that this development and the synergy with the buyers' existing steel infrastructure will have a positive impact on the company and provide long-term value to its shareholders," the company added.
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