Walton wants 10% free float shares in 3 years

Walton Hi-Tech Industries wants to reach at least 5 per cent free-float shares of paid-up capital of the company through gradual off-loading of the balance of 4.03 per cent shares within three years.

Meanwhile, the Dhaka stock exchange’s second-largest market-cap company is attempting to transfer the remaining 5 per cent of shares through a gift in accordance with securities rules within one year.

Walton applied for the time extension with those processes from the stock market regulator, Bangladesh Securities and Exchange Commission (BSEC), in the last month to offload more shares gradually.

The local electronics giant currently has 0.97 per cent free-float shares in the country’s stock market.

As per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015, a company has to offer shares at least equivalent to 10 per cent of its paid-up capital to be listed in the stock market.

In the letter, Walton said, considering the greater interest of the general shareholders of the company and the capital market as a whole, the Board of Directors has decided to place those proposals for the kind consideration of the BSEC. 

It stated that at least 1 per cent of the shares of sponsors or directors will be free-floated and donated to the trust in accordance with applicable securities laws.

Walton also wants to waive several declarations for the above-mentioned off-loading/gift of shares. 

Earlier in September of last year, stock market regulators asked Walton, Berger Paints, and ICB to offload more shares to meet the regulatory requirement.

Walton’s sponsor-directors will have to offload 2.73 crore or 9.03 per cent share of the company to meet the regulatory requirement, whose market price stood on Sunday at Tk 3,195 crore.

Its share price was also up 5.3 per cent on Sunday on the Dhaka bourse.

Walton, a local electronics giant, made its debut on the stock exchange on September 23, 2020. After getting listed, its market capitalisation reached Tk 43,552 crore.

The dearth of floating shares enabled Walton to reach the landmark within a short time, said stock market analysts preferring anonymity.

As per the bidding price, Walton issued 2.8 million shares, or only 0.92 per cent of its pre-IPO paid-up capital, to raise Tk 100 crore from the capital market.

The authorized capital of the company is Tk 600 crore, while its paid-up capital is Tk 303 crore.