Walton IPO with ever highest EPS in capital market

Staff Reporter: Walton Hi-Tech Industries (WHIL) is going to be listed in capital market with ever highest EPS recorded during the Initial Public Offering or IPO.

Comparing with the listed companies’ EPS disclosed in their previous year’s financial statements, the electronics giant’s EPS Tk 45.87 is in the top eighth position. Even, Walton’s EPS’s was higher than that of some listed multinational companies like Berger Paints and Grameenphone.

On the other hand, Walton EPS is the second highest compared with the listed local companies’ last financial year’s EPS.

According to the EPS disclosed by the capital market’s listed companies in their last financial year’s statements, Reckitt Benckiser’s EPS Tk 131.06 was the highest highest and the followings were Marico Bangladesh Ltd.’s EPS Tk 84.01, GlaxoSmithKline EPS Tk 81.83, Linde BD’s EPS TK 80.93, Bata Shoe’s EPS 72.79, British American Tobacco’s EPS Tk 51.37, Renata’s EPS 46.63 and then Walton’s EPS Tk 45.87.

Among the listed companies, which were higher EPS than that of Walton, the lowest prices of the shares of Bata Shoe was Tk 693.20. Considering the facts, the general investors of the IPO will get Walton’s each share at only Tk 252.

MA Hafiz, director of AAA Finance and Investment Limited, said that the tech firm Walton’s EPS is the highest he has ever seen during the IPO of a company.

Capital market experts said that EPS is a very good indicator of the profitability of any organisation, and also one of the most widely used measures of profitability. EPS is an important measure of management performance as it shows how much money the company is making for it’s shareholders.

Walton’s Company Secretary Partha Protim Das said, investors generally gets their expected profits as capital gains or dividends from the investment in high EPS recorded companies. In terms of EPS, Walton is an ideal company for the investors.

Capital market analyst Prof. Abu Ahmed said, Walton’s overall business performance is very sound. Listing of the company’s securities in stock market will have a positive impact in strengthening the market.

On June 23, Bangladesh Securities and Exchange Commission (BSEC) at the 729th commission meeting, chaired by its Chairman Prof Shibli Rubayat Ul Islam, approved the IPO of Walton Hi-Tech Industries Limited (WHIL) to raise Tk 100 crore from the stock market under the book building method.

Walton’s cut-off price per share was set at Tk 315 with the proposed rates of the eligible investors during the bidding of price discovery of Walton’s share in March this year. Walton will spend the capital on expansion and modernisation of its factories, research, quality improvement, partial clearance of liabilities in bank loans and IPO management.

The local tech firm will release 29,28,343 general shares through the IPO. Out Of these, total of 13,79,367 shares will be issued to eligible investors at their own bidding prices. As per the rules, the eligible investors will have to buy as many shares as they offered the prices during the bidding process.

And, the general investors will get 15,48,976 shares at Tk 252, a 20 percent discounts from the cut-off price.

Walton began its journey as a private company on Apr 17, 2006 and turned into a public firm on May 14, 2018.

It initially produced refrigerators, air conditioners and compressors. It now has a range of electrical and electronics products.


Dhaka/M Mahfuzur Rahman/Nasim