Walton IPO lottery to take place September 3

Walton Hi-Tech Industries will hold the online lottery for its initial public offering (IPO) on September 3 this year.

The company will raise Tk100 crore from the capital market to expand its businesses and repay its bank loans.

"We are yet to know how many applications have been submitted by investors for Walton's IPO. We need more time to know the exact figure of IPO applications," an official of issue manager AAA Finance and Investment told The Business Standard.

Earlier from August 9-16, investors submitted applications to buy the company's shares.

The Bangladesh Securities and Exchange Commission (BSEC) has approved the sale of the primary shares of the company on a 20 percent discount to general investors through the 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.

Further, 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.

On January 7, 2020, BSEC allowed Walton to explore the cut-off price of its shares through the electronic bidding.

Walton has 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.

The company's net asset value per share was Tk243.16, with the revaluation, and Tk138.53, without revaluation, in the last financial year.

Founded in 1977, Walton Hi-Tech Industries Ltd 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 on 22 production bases over 764 acres of factory area.