In each of the first two consecutive sessions, Walton shares gained 50% with rare interest for selling
Walton Hi-Tech Industries, having its debut in both local bourses on Wednesday, witnessed no sell enthusiasm even in the second trading session.
The home grown leading electronics and appliance manufacturer issued each of its primary shares to the public at Tk252 in its widely discussed initial public offering (IPO) this year, where general investors' subscription were 10 times higher than the actual offer.
Stunning growth and profitability in business coupled with the supply scarcity in floating shares – less than 1% held by the outsider investors – fueled the demand for Walton stocks in the bourses since the opening bell on Wednesday.
And the market barely saw any seller asking for any price within allowable range for the two consecutive sessions. A large number of investors have been putting their bids at the ceiling price in the hope of some sellers, but a very few of them were entertained with supplies.
The current regulation allows a new share's price to move up by maximum 50% from the issue price – the price at which the public gets primary shares – on the first two days of trading and from the third session the limit turns into a regular one – up to 10%.
On Wednesday, Walton Hi-Tech shares closed at Tk378 and the closing price was Tk567 on Thursday.
During the shares' launching ceremony on Wednesday, Dhaka Stock Exchange (DSE) Managing Director Kazi Sanaul Hoq said Walton's listing with the capital market is a milestone. Walton will play a guiding role in the u-turn of the capital market from bad to good.
He expected that Walton would do better than the multinational companies listed on the country's capital market.
Prior to that, an agreement was signed between Walton and the DSE. SM Ashraful Alam, managing director of Walton Hi-Tech Industries Limited, and Chief Regulatory Officer Abdul Latif signed the agreement papers on behalf of their respective organisations.
DSE Chief Financial Officer (CFO) Abdul Matin Patwary, Walton Hi-Tech Chairman SM Nurul Alam Rezvi, Director SM Mahbubul Alam, Additional Managing Director Golam Murshed, CFO Abul Bashar Howlader, Deputy Managing Director Nazrul Islam Sarker and Eva Rezwana, Executive Director Humayun Kabir and Uday Hakim, Company Secretary Partha Protim Das, AAA Finance Chairman Arif Ahmed, Managing Director Obaydur Rahman, Prime Bank Investment CFO Khandokar Raihan, Satcom IT Ltd Vice-chairman Swadesh Ranjan Saha, were present on the occasion.
Meanwhile, the Dhaka office of Chittagong Stock Exchange also rang bells to celebrate Walton's debut.
Walton Hi-Tech Industries Managing Director and CSE Deputy General Manager Hasnain Bari along with CSE deputy managers Parveen Akhter, Rahi Iftekhar Reza and Masuda Begum were present there.
SM Ashraful Alam, managing director of Walton Hi-Tech, said "Walton is marching forward with a target of becoming a global brand in the international electronics market."
He further said the general investors of the country have joined the advancement of the journey of Walton family. They are not mere shareholders, but the partner of Walton's future progress and achievement of its target.
"Therefore, the advice of shareholders will be given importance," he added.
He also assured that Walton maintains transparency in every aspect of its accounts and financial information and this practice will continue.
Walton collected Tk100 crore from the market to expand its business and repay some bank loans.
However, analysts believe the company with net asset value per share of Tk243 and annual profit per share of Tk45.87 came in the market mainly for a price discovery.
AAA Finance was the issue manager of the company and Prime Bank Investments Ltd was the registrar to the issue.