Walton allowed to offload additional 9% shares in 3yrs

The Bangladesh Securities and Exchange Commission (BSEC) has allowed Walton Hi-Tech Industries to offload an additional 9.03 per cent of shares through the public market within three years to ensure 10 per cent free-float shares of the listed company on the market.

On Sunday, the stock market regulator wrote to the company about the issue.

Walton is allowed to extend the free-float shares up to 10 per cent of the paid-up capital within three years from the issuance of this letter, said the BSEC.

The regulatory body instructed the company to comply the decision of the BSEC and report on a monthly basis, it said. Earlier, on April 06 this year, the listed company applied for the time extension with those processes from the stock market regulator, BSEC, 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 following 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.

Its share price was also up 1.63 per cent to Tk 1094.50 on Monday 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.