Public subscription of Walton Hi-Tech Industries Limited (WHIL) is scheduled to begin Sunday with the company aiming to raise Tk 1 billion from capital market under the book building method.
The IPO subscription will continue until August 16.
A beneficiary account (BO) holder can apply only for a single lot and each lot is consisting of 20 shares.
Price of Walton’s each share for both resident and non-resident Bangladeshis has been set at Tk 252 and thus a BO account holder can apply for a single lot at Tk 5,040.
According to capital market sources, the opening of Walton IPO made the capital market’s general investors enthusiastic. Walton’s last year Earnings per Share (EPS) as well as Net Assets Value (NAV) per share allured the IPO (Initial Public Offering) investors.
Considering Walton’s EPS, NAV and overall business performance, the general investors hoped that they will earn desired capital gains through investing in Walton shares. And so, they have been awaiting the public subscription of Walton.
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.
It was known that Walton Hi-Tech is going to be listed in capital market with ever highest 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 Tk 45.87 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.
Kazi Ahsan Habib, chief of business operation of Prime Bank Securities, said that Walton EPS, NAV and overall business performance posted in its prospectus were very satisfactory and also fulfill the criteria of a good issue.
Dr Md Mizanur Rahman, chairman of Marketing Department of Dhaka University, said that Walton’s listing would have a positive impact on the capital market. This initiative will not only bring back the general investors’ confidence in the market but also assist to accelerate the progress of the national economy, he added.
Md Ataur Rahman, a general investor from Joytun Securities International, said no IPO has been issued in the capital market for the last seven months.
Most of the listed companies through IPO in last year could not meet investos’ desired expectations, he said, adding that, “we (general investor) lost our confidence in capital market investment.”
In this situation, the listing of Walton Hi-Tech like strong asset based company raises hopes for the general investors.
Now, most of the investors are awaiting for investing in Walton share through IPO, saying it he expressed the hope of earning good capital gains from that investment.
Bangladesh Securities and Exchange Commission (BSEC) on June 23 approved the IPO proposal of the Walton Hi-Tech to raise a fund worth Tk 1 billion 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 as issue manager of the company.