Economic Reporter :
Bangladesh Securities and Exchange Commission (BSEC) has given the final approval to Walton Hi-Tech Industries Limited (WHIL) for raising Tk 100 crore fund in capital from the stock market through issuing initial public offering or IPO under the book building method.
At the 729th commission meeting, presided over by BSEC’s Chairman Prof Shibli Rubayat Ul Islam, the commission has approved the cut-off price per share that was set at Tk 315 with the proposed rates of the eligible investors during the bidding of price discovery of Walton’s share in March this year.
It was said at a press statement, signed by BSEC’s Executive Director and spokesmen Md. Saifur Rahman, issued on Tuesday.
According to the statement, WHIL has received the approval of releasing 29,28,343 general through the IPO shares. Of these shares, total of 13,79,367 shares will be issued to eligible investors at their own bidding prices. As per the rules, the eligible investors will have to buy as many shares as they offered the prices during the bidding process.
And, the general investors will get 15,48,976 shares at Tk 252, a 20 percent discounts from the cut-off price.
WHIL will spend the capital from the stock market on expansion and modernisation of its factories, research, quality improvement, partial clearance of liabilities in bank loans and IPO management.
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.
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.
Partha Protim Das, company Secretary of Walton, said now they will go for the subscription and lottery of the IPO of Walton shares. After that, the shares will be allocated to those investors, who will win the IPO lottery, and then their shares will be deposited to the accounts of Central Depository Bangladesh Limited. Finally, BSEC will announce the date of commencing transactions of shares in the stock market after listing the company in the capital market.
Uday Hakim, executive director of Walton, said, as of today, only the entrepreneurs were the proprietors of Walton. But following the BSEC’s approval of issuing IPO of Walton shares, general investors are going to be involved in the company’s proprietorship, he added.
Walton’s listing in the capital market will make a positive role in strengthening the market, saying it he hoped that the investors of Walton shares will be benefited through capital gains as well as dividend.
According to the EPS disclosed by the capital market’s listed companies in their last financial year’s statements, Reckitt Benckiser’s EPS Tk 131.06 was the highest highest and the followings were Marico Bangladesh Ltd.’s EPS Tk 84.01, GlaxoSmithKline EPS Tk 81.83, Linde BD’s EPS TK 80.93, Bata Shoe’s EPS 72.79, British American Tobacco’s EPS Tk 51.37, Renata’s EPS 46.63 and then Walton’s EPS Tk 45.87.
Among the listed companies, which were higher EPS than that of Walton, the lowest prices of the shares of Bata Shoe was Tk 693.20. Considering the facts, the general investors of the IPO will get Walton’s each share at only Tk 252.
Walton began its journey as a private company on Apr 17, 2006 and turned into a public firm on May 14, 2018.
It initially produced refrigerators, air conditioners and compressors. It now has a range of electrical and electronics products.
