The new capital market has received a huge response from investors. And all this has happened around Walton’s IPO application.It is learned that after a long time in the capital market, investors have become quite excited and interested with the IPO of a good company like Walton. Small and ordinary investors who have turned their backs on the capital market have regained confidence. Such a picture was seen among investors in various brokerage houses while accepting the IPO application of Walton Hi-Tech Industries from August 9 to August 18.
At that time, various brokerage houses including EBL Securities, Prime Bank Securities, Jaytun Securities, Shahjalal Islami Bank Securities and Banco Securities were visited in the capital. Even on the last day of the application, the presence of investors in the brokerage houses was noticeable from the morning, ignoring the rain.Investors have regained confidence in Walton’s IPO application
According to stakeholders, investors are interested in applying for the company’s IPO as Walton’s earnings per share (EPS) and net asset value (NAV) are in a good position, along with the country’s top electronics company.
According to the authorities of the brokerage houses, the BO accounts of many investors were inactive as the market was bad for a long time and no IPO of a good company came. However, they are applying for IPO by activating all those inactive BO accounts on the occasion of Walton’s IPO. Many new investors have made BO accounts around the Walton IPO.
Ataur Rahman, an investor in Jaitun Securities, said, “I am looking forward to investing in the secondary market as well as in IPOs.” I have lost interest in investing in the capital market for a long time as the IPO of Valo Maine Company did not come. However, with the IPO of a good company like Walton, I have regained my interest in investing.
EBL Securities Managing Director. Sayedur Rahman said that investors have been interested in Walton for a long time. As a result, the company’s IPO has seen a huge response from investors.
In the first Dutch auction of Walton held in the country from March 2 to 5, the cut-off price was set at Tk 315 per share offered by institutionally qualified investors. As per the rules, only those who offer share price equal to or more than the cut-off price among the institutionally eligible investors participating in the bidding can apply for IPO.
According to the Dhaka Stock Exchange (DSE), 233 institutional qualified investors have been selected in Walton’s IPO application. Of these, 18 have applied for IPO at a cut-off price of Tk 315. The remaining 6 have been considered eligible by offering more than 315 rupees.Investors have regained confidence in Walton’s IPO application
According to the law, even if there is a provision to issue shares in the IPO with a 10 per cent reduction in the cut-off price (discount), Walton will issue a share at Rs 252 per share, a 20 per cent reduction in the IPO, taking into account the interests of general and small investors and the development of the capital market.
According to the data, Walton IPO has 20 shares per lot. The price per share is 252 rupees. As such, ordinary investors have been able to apply for an IPO for a maximum of Rs 5,040 against a BO account.
At the 629th Commission Meeting of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, on June 23 this year, Walton Hi-Tech was approved to raise funds through an IPO.
Walton Hi-Tech Industries will raise Rs 100 crore from the capital market through book building method. Of this, Tk 80.98 crore will be collected from eligible investors and Tk 39.34 crore from general investors. From the money raised, the company authorities will spend Tk 62.50 crore on business expansion, Tk 33 crore on loan repayment and Tk 4.5 crore on IPO management.
AAA Finance & Investment is the issue manager for Walton Hi-Tech.