Walton Hi-Tech industries Limited’s (WHIL) last year Earnings Per Share (EPS) as well as Net Assets Value per share is alluring the IPO (Initial Public Offering) investors to invest in Walton shares.
Considering Walton’s EPS, NAV and overall business performance, the general investors hoped that they will earn desired capital gains through investing in Walton share. And so, they have been awaiting for opening the public subscription of Walton.
Already, the opening date of public subscription of Walton Hi-Tech was set on August 09 and will be continued until August 16 of 2020.
A beneficiary account (BO) holder can apply only for a single lot comprising 20 shares.
As per the Bangladesh Securities and Exchange Commission (BSEC), 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.
As per the company’s financial statement as of June 30 of 2019, WHIL’s Net Assets Value (NAV) with revaluation reserve per share was recorded at Tk 243.16 and its Earnings Per Share (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 some listed multinational companies including Berger Paints and Grameenphone.
Md. Ataur Rahman, a general investor from Joytun Securities International, said that no IPO have been issued in capital market for the last seven months.
Most of the listed companies through IPO in last year could not meet investor’s desired expectations failed to meet expectations level, saying it he added, “As a result, we (general investor) lost our confidence in capital market investment.”
In this situation, he said that the listing of Walton Hi-Tech like strong asset based company make a good hope 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.
Another general investor from MTB Securities Kamruzzaman Tonmoy said, Walton listing into capital market is a great news for the market as well as the investors. Walton is the leading electronics brands in Bangladesh, mentioning it he said, the company’s last year posted EPS and NAV were very good.
He believed that Walton’s listing will be resulted in raising the volume of good shares in the market.
Md. Mamun Sarder, who opened a BO account for the first time in EBL securities few days ago, said that he wanted to invest in capital market many times. But he was disheartened witnessing the continuous deterioration of the overall market situation.
Sarder said, “When I knew that Walton is going to be listing in the market through IPO, I opened a BO account. Walton IPO would be my first IPO. I hoped about earnings of good dividends or capital gains from Walton if I get the company’s share through IPO.”
Kazi Ahsan Habib, chief 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.
He hoped that Walton will lead the capital market’s improvement in the next 4 to 5 years.
