The Bangladesh Securities and Exchange Commission (BSEC) has conditionally approved a proposal to transfer nearly 30% of the shares of listed engineering company Dominge Steel Building Systems Ltd to new investors.

Under the approval, 30.78 million shares held by the company’s sponsor-directors will be transferred to Akij Resources Ltd, Sheikh Jasim Uddin and Faria Hossain through an off-market matched transaction under Central Depository Bangladesh Ltd rules.

BSEC has imposed several conditions on the transfer. The sponsor-directors must collectively retain at least 30% of the company’s shares, while each sponsor-director must individually hold at least 2%.

The shares proposed for transfer cannot be pledged or used as collateral for loans. The company must also settle all outstanding issues within six months of the commission’s approval and complete the share transfer within 30 working days.

As of July 31, general investors held 54.18% of Dominge Steel, institutional investors 15.60% and foreign investors 0.02%. The remaining 30.20% was held by sponsor-directors.

The proposed transfer could significantly change the company’s ownership and management structure. Market observers view the potential involvement of Akij Resources positively, citing its experience in the steel sector and the possibility of fresh capital investment.

Dominge Steel, however, has been facing financial and operational difficulties. Its revenue fell 54% year-on-year to Tk 5.75 crore during July-December of FY2025-26, while it posted a net loss of Tk 94 lakh, resulting in a loss of Tk 0.09 per share.

The company’s share price has risen sharply amid speculation over the ownership change, gaining around 147% since March to reach Tk 61.70 at the latest trading session.

Market participants caution investors against making decisions solely on expectations of an acquisition, noting that the company’s recovery will ultimately depend on fresh investment, stronger management, restoration of operations and successful implementation of its business plans.