Walton Hi-Tech Industries will receive an aggregate amount of premium worth Tk 973.12 million from eligible and general investors offloading above 2.75 million shares of ten taka each.
The company is going to receive such amount of premium offering only 0.91 per cent shares as eligible investors (EIs) quoted prices up to Tk 765 per share.
The company officials said the EIs quoted prices in the bidding taking into account the fundamental base of the Walton Hi-Tech Industries.
Under the book building method, the stock exchanges have already conducted price bidding required to allot 50 per cent shares to the EIs before floating IPO (initial public offering).
After the bidding, the cut-off price has been fixed at Tk 315 each and the value of the shares allotted to EIs stood at above Tk 609.65 million, of which premium worth Tk above 595.86 million will come from over 1.37 million shares.
Under the book building method, another 50 per cent shares will also be issued to general investors including the non-resident Bangladeshis (NRBs) through IPO at 10 per cent discount on the cut-off price.
So, above 1.37 million shares will be issued through IPO at a price of Tk 283.50 each.
In that case, the allotted value of the shares to be issued to general investors and NRBs will stood at above Tk 391.05 million, of which above Tk 377.25 million will be the premium.
As a result, the amount of total premium that will be received by Walton Hi-Tech Industries will stand at Tk 973.12 million for above 2.75 million shares of Tk 10 each.
The Bangladesh Securities and Exchange Commission (BSEC) allowed Walton Hi-Tech to explore its cut-off price on January 7 - a requirement for going public under the book building method.
The company will raise a capital worth Tk 1.0 billion using the book building method to expand business and repay bank loans.
Partho Protim Das, company secretary at Walton Hi-Tech Industries, said presently, there is no scope of just quoting prices without receiving shares.
"The EIs quoted prices depositing 100 per cent fund required to receive their desired quantity of shares. It means they quoted prices considering the company's fundamentals," Mr. Das told the FE.
He said leading EIs including the sister concerns of IDLC Finance and LankaBangla Finance quoted prices above the cut-off prices.
The cut-off of the Walton's shares has been fixed at Tk 315 and general investors will get shares with 10 per cent discount on cut-off price at 283.50 each.
As a result, the IPO price of the Walton's shares will be Tk 283.50 each.
In the bidding, one EI quoted the highest price of Tk 765 each for 0.7 per cent or 100 shares only.
The second highest price was quoted at Tk 684 each for 1.06 per cent or 14,600 shares.
Six EIs quoted prices ranging between Tk 600 to Tk 641 each, while 21 EI investors quoted prices ranging from Tk 400 to Tk 571 per share.
42 EIs ranging from Tk 200 to Tk 370, 28 from Tk 100 to Tk 195 and remaining nine from Tk 12 to Tk 95 per share.
Finally, the cut-off price was fixed at Tk 315 per share meaning all EIs are entitled to receive shares at the prices ranging between Tk 315 to Tk 765.
According to the financial statement for the year ended on June 30, 2019, the company's weighted average earnings per share were Tk 28.42 and net asset value per share was Tk 243.16 after revaluation. The net asset value per share was Tk 138.53 before revaluation.
AAA Finance and Investment Ltd is the issue manager for the company's IPO.
An official of the AAA Finance and Investment said they are awaiting the regulatory approval to the IPO proposal required to issue shares to general investors.
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