The company will start its first trading at both stock exchanges today
Local electronics manufacturing giant Walton Hi-Tech Industries Limited's net profit dropped 54% in the third quarter of the last financial year.
However, the company will start its first trading at both stock exchanges from today under the "N" category.
Investors are waiting for the company's debut on the Dhaka Stock Exchange (DSE) with high hopes, said a few brokers.
The trading code for Walton Hi-Tech is "WALTONHIL" at the DSE.
Walton posted a net profit of Tk155.21 crore and earnings per share (EPS) of Tk5.12 in the January-March quarter of 2019-20; which was Tk334.30 crore and Tk11.14 in the same period of the previous year.
The company's net profit rose 5%, to Tk766 crore, and EPS to Tk25.29, in the first three quarters of the last financial year.
However, Walton could not meet its expected export target due to the pandemic. The local market also took a hit from Covid-19, a senior company official said.
The company showed a 290.6% surge in profit and 89.4% rise in turnover in the 2018-19 financial year – just before its listing on the stock market.
In the 2018-19 financial year, Walton's total revenue stood at Tk5,177 crore and net profit at Tk1,376 crore.
The company raised Tk100 crore from the capital market, through an initial public offering (IPO), to expand its businesses and repay bank loans.
The cut-off price per share of the company was set at Tk315 through electronic bidding under the book building method.
Then, Walton sold primary shares with a 20% discount on the cut-off price, considering the interest of general investors amid the pandemic. After that, the cut-off price became Tk252 per share.
According to the electronic subscription system (ESS) for eligible investors (EIs), some EIs bid as low as Tk12 per share of Walton and others as high as Tk765.
On January 7 this year, the Bangladesh Securities and Exchange Commission allowed Walton to fix the cut-off price of its shares through electronic bidding.
Founded in 1977, Walton Hi-Tech began manufacturing refrigerators, freezers, air conditioners, and compressors in early 2008.