Walton get IPO nod for Tk 100 crore to expand business


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Walton get IPO nod for Tk 100 crore to expand business

Local tech giant Walton is going to expand its manufacturing facilities with getting nod Tk 100 crore fund from ailing share market by next couple of months.

The initial public offering (IPO) of Walton Hitech Industries Limited was approved by the Bangladesh Securities and Exchange Commission (BSEC). The approval was given at the 629th meeting of the BSEC held on Tuesday (June 23).

The company will issue 29 lakh 26 thousand 343 shares in the IPO of book building method. Of these, 13 lakh 89 thousand 36 shares will be sold to successful institutional investors in the auction.

The remaining 15 lakh 46 thousand 97 shares will be sold to the general investors

With the participation of institutional investors in the auction, the cut-off price of Walton shares has been fixed at Tk 315. Under existing law, shares must be sold to general investors at least 10 percent below this threshold. However, Walton Hitech Industries will issue these shares at a discount of 20 percent. The proposed price for each share with a face value of Tk 10 stands at Tk 252.

The company will raise Tk 100 crore from the capital market through an IPO. The money will be used to expand the company’s business, repay bank loans and meet IPO costs.

At the end of the financial year ended June 30, 2019, the company’s net asset value per share (NAVPS) was Tk 138.53.

The company’s earnings per share (EPS) as a weighted average in the last 5 financial years was Tk 26.42. AAA Finance and Investment Limited is the issue manager of the company.

Walton is manufacturing ventilators for clinical trials, in the wake of a domestic and global crisis of the device. The machines are used to aid the breathing of critically-ill Covid-19 patients.

Walton said they can produce 100 percent of the ventilators locally, based on demand, once the health directorate approves it following the trials.

Besides, Walton is set to flag off the country’s first lift manufacturing plant, in a display of Bangladesh’s growing industrial prowess.

The plant established at a cost of Tk 50 crore at the Walton Hi-Tech Industries (WHIL) at Chandra, Gazipur has begun test production.




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