The Bangladesh Securities and Exchange Commission (BSEC) has decided on Tuesday to extend the lock-in period on shares held by the sponsors, directors and placement shareholders of Asiatic Laboratories Limited in view of IPO fund underutilisation and a controversial real estate expansion plan.

The decision was taken at the 999th commission meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood.

According to the regulator, at its 837th commission meeting held on August 31, 2022, BSEC had approved the company’s proposal to raise Tk 95 crore through an Initial Public Offering (IPO).

As per the prospectus, the funds were to be utilised for business expansion — including purchase and installation of machinery — construction of a factory building, repayment of bank loans and covering issue management expenses. However, the company has yet to complete utilisation of the IPO proceeds.

Despite this, Asiatic Laboratories on September 28, 2025 disclosed a price sensitive information (PSI) regarding an ambitious plan to construct a 32-storey building, without completing project evaluation, feasibility studies or obtaining required regulatory approvals, including building plan approval and environmental clearance from Rajdhani Unnayan Kartripakkha (RAJUK).

The regulator also noted that the proposed 32-storey building and entry into the real estate or hotel business are not consistent with the company’s Memorandum of Association.

An inspection conducted by the Dhaka Stock Exchange (DSE) identified the aforementioned irregularities in its report.

Considering the DSE inspection recommendations, prevailing market conditions and the interest of general investors, the Commission decided to extend the existing lock-in on shares held by the company’s sponsors, directors and 183 placement shareholders named in the prospectus.

The lock-in will remain in force for an additional three years from the date of expiry of the current lock-in period or until completion and commercial operation of the proposed 32-storey building including obtaining RAJUK’s occupancy certificate whichever occurs later.