Fair prices bid for Walton’s share: eligible investors

Economic Reporter: Leading institutional or eligible investors opined that they offered fair prices for Walton shares during IPO bidding after the detailed evaluation of the company’s financial report, consistent and sustainable profit growth, business development and future growth prospect.

During the Walton’s IPO bidding, one of the leading institutional investors LankaBangla Asset Management Company Limited bid Tk449 for each share of Walton. In this regard, LankaBangla's chief investment officer, MA Faisal Mahmud said, “We thoroughly analyzed Walton's prospectus and financial reports and saw that Walton was growing up historically among other domestic companies. As the company is producing various products indigenously, they are in good shape considering it.”

“Walton’s continuity of growth, business development and future prospects has seemed good to us," he said. “In addition, the company has a relatively low volume of free-float shares. As a result, it is expected that the company will have share demand. Considering these factors, LankaBangla made a bid of BDT449 per share for Walton, which I think was reasonable price.”

IDLC Investment and Finance, another top leading investment companies in the market, made the bid of BDT411. Managing Director of the company Md. Moniruzzaman said, “In terms of bidding, we have seen how powerful Walton's business model is. In particular, it has been considered whether Walton will be able to sustain business with other companies and what their net and gross profit margin will be in the long run.”

He also said Walton is a very good business model in the country. Everyone is watching it and there is lots of evidence. In the local market, the demand for the products of the company is increasing. Market participants think that the lack of a fund-based company will be met if domestic electronics giant Walton is listed in the capital market. This will bring back momentum and increase depth in the capital market.

On January 15, 2019, Walton performed a road show to collect Tk100 crore from the stock market in book building system. Then in January this year, the Securities and Exchange Commission of Bangladesh (BSEC) approved the IPO bidding for the company. The cut-off price of shares of Walton Hi-Tech Industries Limited was then set at Tk315 each after bidding by eligible institutional investors.


Dhaka/Milton Ahmed/Nasim