The Bangladesh Securities and Exchange Commission (BSEC) has approved the sale of the primary shares of Walton Hi-Tech Industries on a 20 percent discount to general investors through Initial Public Offering (IPO).
The securities regulator took this decision at a commission meeting on Tuesday evening.
Cut-off price for the shares has been determined at Tk315 through electronic bidding by the book building method.
Qualified and institutional investors will buy 1.38 million shares of the company at the cut-off price. Individual investors will be able to purchase 1.55 million shares at Tk252 per share, after applying a 20 percent discount on the cut-off price.
Earlier, the BSEC had allowed Walton to explore the cut-off price of its shares through electronic bidding.
The company will raise a capital of Tk100 crore through the IPO. Walton Hi-Tech Industries will use the proceeds to expand its businesses, repay bank loans and meet IPO costs.
Walton has a paid-up capital of Tk300 crore. In the 2018-19 accounting year, the company's total revenue stood at Tk5,177 crore and net profit at Tk1,376 crore.
In the last financial year, the company's earnings per share were Tk45.87.
Additionally, the company's net asset value (NAV) per share, with revaluation, was Tk243.16. Without revaluation, NAV per share was Tk138.53 in the last financial year.
Founded in 1977, Walton Hi-Tech Industries began manufacturing refrigerators, freezers, air-conditioners and compressors in early 2008.
The company then branched out into making televisions, as well as home and electrical appliances. It now has a workforce of more than 20,000 people in 22 production bases on 764 acres of factory area.
Walton's yearly production capacity is 10 million units.