Walton Hi-Tech Industries Ltd will start the subscription of its initial public offering (IPO) on Sunday. Investors can submit their applications to buy the shares of the company from August 9 to 16 this month.
Earlier, the company received the letter of consent from the Bangladesh Securities and Exchange Commission (BSEC) in this regard.
The regulator has approved the sale of the primary shares of Walton Hi-Tech Industries on a 20 percent discount to general investors through IPO.
The 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. And the 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 the electronic bidding.
The company will raise the capital of Tk100 crore through the IPO and 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 was Tk45.87.
Additionally, the company's net asset value (NAV) per share, with the revaluation, was Tk243.16. Without revaluation, its NAV per share was Tk138.53 in the last financial year.
According to the company's unaudited financial statements, Walton posted a 39 percent revenue growth to reach Tk2,610.55 crore in the first half of the 2019-20 financial year. Of the amount, refrigerator sales contributed 77 percent and television sales added the rest.
The company posted 57 percent growth in net profit to stand at Tk616.28 crore. Its earnings per share was Tk20.54 in the first half of the last financial year.
In the 2018-19 financial year, Walton suddenly experienced 89 percent growth in revenue bringing it to Tk5,177.32 crore.
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.