Walton Hi-Tech to hold IPO lottery draw today
The company raises Tk 1.0b from capital market
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Walton Hi-Tech Industries is set to hold IPO (initial public offering) lottery draw today (Sunday), aiming to allocate 1.55 million IPO shares among the successful applicants.
The lottery draw will be held at 10:30am through digital platform due to ongoing Covid-19 pandemic and investors can take part in the programme online, said an official at issue manager.
Walton Hi-Tech is the second company that is going to hold IPO lottery draw through digital platform. On July 23 this year, the Express Insurance held IPO lottery using digital platform due to pandemic.
After the draw, the result will be published on the websites of Dhaka Stock Exchange, Chittagong Stock Exchange, issue manager, and the company.
Walton Hi-Tech earlier completed its initial public offering road show, electronic bidding and IPO subscription as part of the process of raising a capital worth Tk 1.0 billion under the book building method.
The stock market regulator --- Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the Walton Hi-Tech on June 23 this year.
As per the regulatory 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.
The remaining 1.55 million shares opened for general investors, including affected small investors and non-resident Bangladeshis through IPO.
The company's IPO subscription was held between August 9 and August 16 and its IPO oversubscribed by 9.56 times, said an official at issue manager.
The general investors will get IPO shares at Tk 252 each, a 20 per cent discount on cut-off price, as the company gave 10 per cent extra 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.
Walton Hi-tech's pre-IPO paid-up capital is Tk 3.0 billion and authorised capital is Tk 6.0 billion.
As per the entity's audited financial statements for the year ended on June 30, 2019, its net asset value (NAV) per share was Tk 243 (with revaluation) while basic earnings per share (EPS) was Tk 45.87.
AAA Finance and Investment Ltd is the issue manager of the company's IPO.
Founded in 1977, Walton Hi-Tech Industries began manufacturing refrigerators, freezers, air-conditioners and compressors in early 2008.