The bidding period for eligible investors to discover the cut-off price of Walton Hi-Tech Industries shares through electronic subscription system will commence tomorrow (Monday).
The electronic bidding will continue until 5.00pm on March 5 round-the-clock, officials said.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- allowed Walton Hi-Tech to explore its cut-off price on January 7 - a requirement for going public under the book building method.
As per the regulatory approval, the company will raise a capital worth Tk 1.0 billion using the book building method to expand business and repay bank loans.
Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.
As per the book building method, the eligible investors will get 50 per cent shares at the cut-off price through electronic bidding.
The remaining 50 per cent shares will be open to the IPO participants, including affected small investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price.
Apart from business expansion and loan repayment, the company’s IPO proceeds will be used to bear the cost of public offering process.
According to the financial statement for the year ended on June 30, 2019, the company’s weighted average earnings per share were Tk 28.42 and net asset value per share was Tk 243.16 after revaluation. The net asset value per share was Tk 138.53 before revaluation.
AAA Finance and Investment Ltd is the issue manager for the company’s IPO.