The subscription of Walton Hi-Tech Industries’ initial public offering (IPO) will begin on Sunday, with which the company aims to raise Tk100crore from the capital market through Book Building method.
The IPO subscription will remain open for both resident and non-resident Bangladeshis until August 16.
Out of Tk100 crore, Tk60.96 crore will be collected from eligible investors, and the remaining Tk39.04 crore from general investors.
At the end of the bidding process, with a proposed rate between Tk765 and Tk12, the cut-off price was set at Tk315 for institutional investors, while the price for general investors was fixed at Tk252 per share.
Under the Book Building Method, general investors are privileged to get at least 10% discount. In the Walton case, the Bangladesh Securities and Exchange Commission (BSEC) allowed a 20% discount following a request from the company.
A beneficiary account (BO) holder can apply only for a single lot consisting of 20 shares. The price of each Walton share for both resident and non-resident Bangladeshis is set at Tk252 and thus a BO account holder can apply for a single lot at Tk5,040.
Earlier on June 23, the BSEC approved the IPO proposal of Walton Hi-Tech to raise funds to the tune of Tk100 crore by issuing nearly 2.93 million ordinary shares.
According to Walton’s audited financial statement for the year ended June 30, 2019, the company’s net asset value per share and weighted average earnings per share were Tk243.16 and Tk28.42 respectively.
The authorized capital of Walton is Tk600 crore, while its paid-up capital is Tk300 crore.
AAA Finance and Investment Ltd is acting as the issue manager of the company’s IPO.