A digital lottery draw on the Initial Public Offering (IPO) of Walton Hi-Tech Industries Limited was held on Sunday as the company’s IPO was more than nine times oversubscribed.
The company sought to raise Tk39.03 crore through the IPO, but received subscriptions amounting to Tk374 crore.
The results of the lottery to determine which subscribers would receive shares have been published on the official websites of the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Walton Hi-Tech Industries.
The company aimed to raise a total Tk100 crore from the capital market through the Book Building method.
Out of Tk100 crore, Tk60.96 crore will be collected from eligible investors, and the remaining Tk39.03 crore from general investors.
The IPO was open for subscriptions from August 9-16.
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.
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.
