Walton Hi-Tech Industries, which made its stock market debut on Wednesday, crossed $2 billion in market capitalisation on Thursday.
The market capitalisation of the company reached Tk 17,176.03 crore on Thursday, which is equivalent to $2.02 billion ($1=Tk 85).
The market capitalisation indicates the total market value of a company’s outstanding shares.
It is calculated by multiplying the total number of a company’s outstanding shares by the current market price of its share.
The paid-up capital of the company is Tk 302.9 crore and it has 30.29 crore outstanding shares.
The company made its debut on the country’s stock exchanges on Wednesday with an opening price of Tk 252 a share. The prices of the company’s shares closed at Tk 567 each on Thursday.
The company’s shares soared by 50 per cent, the maximum allowable limit, on Wednesday and surged by the Bangladesh Securities and Exchange Commission-set limit also on Thursday.
The company became the fourth most valuable listed company in terms of market capitalisation.
Apart from Walton, there are five listed companies which have market capitalisation of above $1 billion. Of them, three companies — Grameenphone, Square Pharmaceuticals and British American Tobacco Bangladesh — have market capitalisation of above $2 billion.
Market experts said that the dearth of floating shares benefitted the company to reach the landmark within a short period.
As per the bidding price, Walton issued only 27.58 lakh shares or 0.92 per cent of its pre-IPO paid-up capital to raise Tk 100 crore from the country’s capital market.
Only 2,790 shares of the company were traded in the last two days.
As per the IPO prospectus, Walton Hi-Tech Industries started its business operations in 2008.
The company manufactures refrigerators, freezers, air conditioners and compressors and now it is expanding its operations to television, home and electrical appliances.
Walton has captured a substantial market share and positioned itself as the most dominant performer in the electronics sector of Bangladesh, the prospectus said.
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