Many have opened new BO accounts just to apply for an IPO. Some people have activated by depositing money in the old inactive account. The new capital market has received a huge response from investors. Market participants believe that this has happened around Walton’s IPO application.
It is learned that after a long time in the capital market, investors have become quite happy and interested with the IPO of a good company like Walton. Small and ordinary investors who have turned their backs on the capital market have regained confidence. From August 9 to August 18, Walton Hi-Tech Industries received an IPO application from investors in various brokerage houses.
At that time, various brokerage houses including EBL Securities, Prime Bank Securities, Jaitun Securities, Shahjalal Islami Bank Securities and Banco Securities were visited in the capital. Even on the last day of the application, the presence of investors in the brokerage houses was noticeable from the morning, ignoring the rain.
According to stakeholders, investors are interested in applying for the company’s IPO as Walton’s earnings per share (EPS) and net asset value (NAV) are in a good position, along with the country’s top electronics company.
According to the authorities of the brokerage houses, the BO accounts of many investors were inactive due to the long bad market and no IPO of a good company. However, they are applying for IPO by activating all those inactive BO accounts on the occasion of Walton’s IPO.
The cut-off price was set at Tk 315 per share offered by an institutionally qualified investor in the first ever Dutch bidding process in the country from March 2 to 5.
According to the Dhaka Stock Exchange (DSE), 233 institutional qualified investors have been selected in Walton’s IPO application. Of these, 18 have applied for an IPO with a cut-off price of Tk 315. The remaining 6 have been considered eligible by offering a price of more than Tk 315
According to the data, Walton IPO has 20 shares per lot. The price per share is 252 rupees. As such, ordinary investors have been able to apply for an IPO for a maximum of Rs 5,040 against a BO account.
At the 729th Commission Meeting of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, on June 23 this year, Walton Hi-Tech was approved to raise funds through an IPO
Walton Hi-Tech Industries will raise Rs 100 crore from the capital market through book building method. Of this, Tk 80.98 crore will be collected from eligible investors and Tk 39.34 crore from general investors. From the money raised, the company authorities will spend Tk 62.50 crore on business expansion, Tk 33 crore on loan repayment and Tk 4.5 crore on IPO management.