The Bangladesh Securities and Exchange Commission on Tuesday approved the initial public offering of Walton Hi-Tech Industries, allowing the company to raise Tk 100 crore by issuing 29.28 lakh shares at Tk 252-315 each. The stock market regulator gave the approval at a commission meeting presided over by its chairman Shibli Rubayat Ul Islam, a BSEC press release said. The commission on January 7 allowed Walton to conduct IPO bidding by eligible institutional investors under the book building method of public issue rules. Following the company’s decision, the commission decided to offer IPO shares to general and non-resident Bangladeshi investors at 20 per cent, instead of 10 per cent, discount on cut-off price which was set by the institutional investors’ bidding. As per the bidding of EIIs, the cut-off price of the company’s shares stood at Tk 315 each, but its shares will be allotted to the general investors along with NRB investors at Tk 252 each. Of the total shares, 13.79 lakh shares will be issued to the eligible institutional investors. The company will use the IPO proceeds in business expansion, paying bank loans and meeting the IPO expenses. As per the entity’s audited financial statements for the year ended on June 30, 2019, the company’s net asset value per share and weighted average earnings per share of five financial years were Tk 243 (with revaluation) and Tk 28.42 respectively. AAA Finance and Investment is the issue manager of the company’s IPO. The commission at the meeting also allowed City Bank and Jamuna Bank to float non-convertible perpetual bonds worth Tk 400 crore each. The banks will float the bonds that include unsecured nonconvertible, Basel III compliant perpetual and floating rate bonds. The face value of each unit of the bonds of the two banks will be Tk 10 lakh and coupon rate will be 11-14 per cent. Only banks, financial institutions, corporate institutions and other eligible investors will be allowed to subscribe the bonds through private placement. The purpose of the issue is to strengthen the bank’s capital base. IDLC Investment Limited is acting as the trustee while City Bank Capital Resources Limited is the lead arranger for both the bonds.
