Bangladesh Securities and Exchange Commission (BSEC) approved the prospectus for the Initial Public Offering (IPO) of Walton Hi-Tech Industries Limited to raise Tk100 crore through the book building method.
The commission also approved two private commercial banks – The City Bank and Jamuna Bank limited – to issue non convertible bonds totaling Tk800 crore.
As per the book building method, eligible institutional investors took part in the price discovery of the shares by bidding over a fixed time.
Out of Tk100 crore, Tk60.96 crore will be collected from eligible investors, and the remaining Tk39.04 crore from general investors.
At the end of the bidding process, with a proposed rate between Tk765 and Tk12, the cut-off price was set at Tk315.
According to the rules of the book building method, the shares will be sold to general investors at a 20% discount (with extra 10%) or at Tk252 per share.
The BSEC approved the book building method for determining the cut-off price of the company on January 7.
According to the entity’s audited financial statements for the year ending June 30, 2019, the company’s net asset value per share and weighted average earnings per share were Tk243.16 and Tk28.42 respectively.
AAA Finance and Investment Ltd acts as the issue manager of the company’s IPO.
The authorized capital of Walton is Tk600 crore, while the paid-up capital is Tk300 crore.
The meeting also approved The City Banks’s Tk400 crore non-convertible BASEL three complaint perpetual bond. The purpose of the issuance is to strengthen the capital base of the company.
The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net worth individuals, “other than existing” shareholders of the company through private placements in cash consideration.
Besides, the meeting approved Jamuna Bank Limited’s non-convertible BASEL three complaint perpetual bond worth Tk400 crore.
The commission also approved the draft prospectus of RACE Special Opportunities Unit Fund (An open-end).
The initial size of the fund will be Tk35 crore. The sponsor will contribute Tk25 crore, while remaining Tk10 crore will be collected through sales of units. The face value of the units is Tk10 each. ♦
