Walton's IPO subscription begins today

FE DESK

Public subscription of Walton Hi-Tech Industries Limited begins today (August 9) to raise Tk 1.0 billion from capital market under the book building method.

The IPO subscription will be continued until August 16, said a statement.

A beneficiary owner account (BO) holder can apply only for a single lot consisting of 20 shares. Price of Walton's each share for both resident and non-resident Bangladeshis is set at Tk 252 and thus a BO account holder can apply for a single lot at Tk 5,040.

As per the company's financial statement as of June 30 of 2019, WHIL's NAV with revaluation reserve per share was recorded at Tk 243.16 while its EPS was Tk 45.87.

Walton Hi-Tech is going to be listed in the capital market with the highest ever EPS recorded during the IPO.

Analyzing the last year's financial statements of the listed companies in the capital market, it was found that Walton is in the eighth position in terms of EPS while securing the fifth position in terms of NAV per share.

Walton's EPS's was even higher than the EPS of the listed multinational companies.

Bangladesh Securities and Exchange Commission (BSEC) on June 23 approved the IPO proposal of the Walton Hi-Tech by issuing nearly 2.93 million ordinary shares.

As per the stock market regulator approval, the eligible investors will get 1.38 million shares of the company at the cut-off price of Tk 315 each, fixed earlier through electronic bidding.

And, the general investors will get the remaining 1.55 million shares through IPO at Tk 252 each, a 20 per cent discount on cut-off price, as the company gave 10 per cent additional discount considering the interest of the capital market and small investors.

The IPO proceeds will be utilised for expansion of its businesses, repay bank loans and meeting the IPO-related expenses.

AAA Finance is in charge of issue manager of the company.