Walton IPO bidding begins Mar 2

The bidding to discover cut-off price for Initial Public Offering share of Walton Hi-Tech Industries Ltd is set to begin on Mar 2, the company has said.

Starting at 5pm on that day, the process will continue until 5pm on Mar 5, it said in a statement on Saturday.

Walton will raise a capital worth Tk 1 billion, according to the statement.

It said the company signed agreements with the Dhaka Stock Exchange and Chittagong Stock Exchange to use the electronic subscription system to discover the cut-off price through the bidding of the eligible investors.

The agreements with the DSE were signed at its office in the capital’s Nikunja on Feb 25.

Nazrul Islam Sarkar, the deputy managing director of WHIL, Abdul Latif, assistant general manager of DSE, Golam Faruk, head of business development of CSE, signed the agreements on behalf of the respective sides.DSE Managing Director Kazi Sanaul Haque, Chief Operating Officer M Saifur Rahman Majumder, Chief Financial Officer Abdul Matin Patwary, Walton Senior Operative Director Yakub Ali, Operative Director Fahim Mahbub, Company Secretary Partha Pratim Das, and representatives of AAA Finance & Investment Ltd, the Registrar to Issue Prime Bank Investment Limited and senior officials of both stock exchanges were present there.

Eligible investors will be able to bid for cut-off price by using the electronic subscription system during the period, Walton’s Das said. After discovering cut-off price, the shares will be issued to investors through lottery at 10 percent reduced rate.

Walton held a roadshow on Jan 15 last year to come up in the IPO, Das said.

It highlighted various issues related to company contacts, financial condition, future plans and different issues on IPO.

Bangladesh Securities and Exchange Commission approved Walton’s IPO bidding on Jan 7 this year.

Walton’s authorised capital in the share market is about Tk 6 billion while its paid-up capital is Tk 3 billion.

The money raised from the IPO will be spent on expansion, modernisation, research, upgrading Walton factories, partial payment of bank loans and of IPO costs, according to the statement.

“Producing world-standard innovative products, Walton has now become the top brand in the country. Walton is also securing its place in the global market. Walton is issuing IPO shares to ensure people’s engagement with the advancement of company.”

(FE)