Associated Oxygen Limited (AOL), a listed company on Bangladesh’s stock market, has utilized most of the funds raised through its Initial Public Offering (IPO) for the purposes approved by regulators, according to a recently published auditor’s certificate.

The company raised Tk 150 million through its IPO between September 10 and 16, 2020, and deposited the proceeds in a separate account with BRAC Bank. As of January 31, 2026, AOL had spent Tk 147.59 million from the IPO fund, leaving an unutilized balance of Tk 2.41 million. No new expenditures were made from the fund during the reporting period.

According to the audit report, the largest portion of the IPO proceeds Tk 68.17 million was spent on the construction of a new plant shed and storage shed, slightly exceeding the approved allocation by Tk 15,791. The company also invested Tk 42.4 million in the purchase and installation of new plant machinery and equipment, while Tk 20 million was used to repay bank loans.

In addition, Tk 17.02 million was spent on IPO-related expenses, including issue management fees, underwriting charges, prospectus publication, and printing costs.

The report noted that AOL generated Tk 3.38 million in additional income from interest earnings, foreign exchange adjustments, and bank-related transactions. Including this income, the total IPO fund stood at Tk 153.38 million, of which Tk 150.97 million had been utilized, leaving the same unspent balance of Tk 2.41 million.

Auditors stated that Tk 2.32 million of the remaining balance is held in the company’s IPO account at BRAC Bank’s Gulshan branch, while the rest is retained in the company’s own bank account and will be adjusted later.

The report also detailed that AOL had placed Tk 97 million in fixed deposits with NRB Commercial Bank in November 2020. These deposits were subsequently encashed in phases to finance project expenditures and loan repayments.

Regarding machinery procurement, the company paid supplier Progressive Engineering Corporation for equipment installation. However, the report mentioned that Tk 6.33 million remained payable to the supplier as of November 2023.

The audit firm, Fames & R Chartered Accountants, confirmed that no IPO funds were spent during January 2026 and that all expenditures were supported by proper documentation, vouchers, and bank records. The auditors further stated that the funds were used in accordance with the objectives outlined in the IPO prospectus.

Although the original deadline for utilizing the IPO proceeds expired in October 2022, the company sought extensions from the Bangladesh Securities and Exchange Commission (BSEC). While an initial extension was granted until March 2023, a subsequent request for an extension until September 2023 was not approved.

Despite the timeline issues, the auditors concluded that the IPO proceeds had been used for their intended purposes and that all procurement, import, and construction activities were carried out following proper procedures. They certified the disclosed information as fair and acceptable.