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Category: Corporate

  • Company registration rises to 145,913 by June 2021: SECP

    Company registration rises to 145,913 by June 2021: SECP

    ISLAMABAD: The total number of companies registered with the Securities and Exchange Commission of Pakistan (SECP) has increased to 145,913 by end June 2021, a statement said on Friday.

    The commission registered 2,504 new companies in June 2021, indicating a growth of 63 per cent as compared to corresponding period last year.

    Ninety-nine per cent of these were incorporated online and 45 per cent applicants were issued registration certificates the same day, whereas 203 new foreign users were registered from overseas.

    Of the newly registered companies, 65 percent were registered as private limited companies, 31 percent as single member companies and four percent as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP). Total capitalization (paid-up-capital) of newly incorporated companies for the current month is amounted to Rs3.3 billion.

    The construction & real estate sector took the lead with the incorporation of 474, trading with 382, I.T with 275, services with 216, ecommerce with 129, food & beverages with 105, textile with 86, corporate agricultural farming with 76, education with 66,  engineering, and market & development 54 each, pharmaceutical with 50, healthcare with 45, tourism with 39, mining & quarrying, and transport with 36 each, chemical with 34, auto & allied with 33, cables & electric goods with 31,  logging with 27, communication with 26, power generation with 24, paper & board, and cosmetics & toiletries with 19 each, steel & allied with 18, broadcasting & telecasting, and  fuel and energy with 16 each, wood & wood products with 13 and 105 companies were registered in other sectors.

    Foreign investment has been reported in 66 new companies. These companies have foreign investors from Austria, Azerbaijan, Bangladesh, China, France, Germany, Ghana, Hong Kong, Iran, Italy, Kyrgyzstan, Malawi, Mexico, the Netherlands, Nigeria, Oman, Philippines, Qatar, Russia, Singapore, Slovakia Republic, Sweden, Syria, Turkey, the UK, Uruguay and the US.

    The highest numbers of companies, i.e. 810 were registered in Islamabad, followed by 807 and 394 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 174, 127, 98, 62, 22, and 10 companies respectively.

  • CCP initiates probe against Foodpanda for discriminatory practices

    CCP initiates probe against Foodpanda for discriminatory practices

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Wednesday said it initiated a probe against the online food delivery service platform/aggregator, Foodpanda, to investigate its alleged abuse of dominant position and possible violation of prevailing laws, in the market of online food delivery platforms.

    The CCP said that the enquiry committee will also review and place before the commission, its findings, whether the exemption granted (for loyalty agreements) to Foodpanda in April 2019 for the period of three years is impeding competition in any manner in light of concerns highlighted by various market players.

    The CCP launched the investigation on the formal complaints filed by Foodpanda’s competitor M/s. Cheetay Logistics Pakistan Limited on May 04, 2021, and the All Pakistan Restaurant Association (APRA) on June 10, 2021. Formerly, a complaint was also filed by another online food aggregator, Careem Networks Pakistan (Private) Limited, pertaining to the exemption granted to same aggregator in 2019.

    The CCP’s Cartel and Trade Abuse Department conducted a preliminary fact-finding exercise and found that Foodpanda seems to have a dominant position in the market of online food delivery platforms with a considerable amount of admitted volume of 100,000 per day food orders from different restaurants/outlets/food chains across the country. Regarding the alleged abuse of dominant position, the concerns include: charging exorbitant commissions; offering fidelity rebates; discriminatory practices; setting out various discounts to exploit participants; and entering into exclusivity with parties through loyalty agreements.

    These concerns stretch the scope of abuse to being a barrier for the new entrants in the market of online food delivery platforms.

    The enquiry committee has already been working on the case, consulting all the concerned parties and seeking relevant information for deliberating the matter objectively, the CCP said.

    Findings of the enquiry upon conclusion will be placed before the commission for its decision.

  • NCCPL excludes Hascol Petroleum from list of eligible securities

    NCCPL excludes Hascol Petroleum from list of eligible securities

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Monday excluded M/s. Hascol Petroleum from the list of eligible securities after the stock exchange placed the oil company into defaulter segment.

    The NCCPL said that this is with reference to Pakistan Stock Exchange Notice No. PSX/N-781 dated: June 25, 2021, regarding placement of M/s. Hascol Petroleum Limited (“HASCOL”) in the Defaulter’s segment with effective from Monday, June 28, 2021.

    This event leads to action under Clauses 7A.3.5 and 7B.3.1.4 of NCCPL Regulations, 2015 that has been reproduced below for ready reference;

    “Where a Security that has been quoted on the defaulter’s segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the SLB Market from the date it has been placed on the defaulter segment. However, all open SLB Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.”

    “In case where such Security is reinstated during the review period, trading in SLB Market shall not be allowed during that review period.” (Regulations 7A.3.5)

    “Where a Security that have been quoted on the Defaulter segment of the Exchange and notified to the Company, such Security shall not be made available on MF Market from the date it has been placed on the defaulter segment. However, all MF (R) Transactions shall be released as per the terms and conditions defined in the Margin Financing Agreement between MF Participants.”

    “In case where such Security is reinstated during the review period, trading in MF Market shall not be allowed during that review period.” (Regulations 7B.3.1.4)

    Where a MT Eligible Security that have been quoted on the defaulter segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the MT Market from the date it has been placed on the Defaulter segment. However, all open MT Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.

    In case where such Security is reinstated during the review period, trading in MT Market shall not be allowed during that review period. (Regulations 7C.3.2 (15)

    Accordingly, in pursuance of provisions stipulated in the above referred clauses of NCCPL Regulations, 2015, M/s. Hascol Petroleum Limited shall be excluded from the list of SLB Eligible Securities, MF Eligible Securities and MTS eligible Securities with effect from Monday, June 28, 2021.

  • Beverage Cans IPO oversubscribed three times; raises Rs4.6 billion

    Beverage Cans IPO oversubscribed three times; raises Rs4.6 billion

    KARACHI: The book-building phase of Pakistan Aluminium Beverage Cans Ltd (PABC)’s Initial Public Offer (IPO) has concluded with an oversubscription of 3.3 times, the company said on Wednesday.

    The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at Rs 49/share, 40 percent higher than the floor price of Rs 35, country’s only Beverage Can manufacturer said.

    PABC has raised Rs 4.6 billion in total, making it the second largest IPO in the Private-Sector.

    “The response to the book building has been phenomenal,” said Shahid Habib CEO of Arif Habib Ltd, Advisor and Book Runner of the Issue.

    Several brokerages had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 10.8 billion against the IPO’s book-building size of Rs 3.3 billion.

    The general public will subscribe to 23.4 million shares (25 percent of the total offer size) on June 29/30 at the strike price of Rs 49, the company said.

    Azam Sakrani, CEO Pakistan Aluminium Beverage Cans Ltd, in his statement thanked the institutions and individuals investors for showing interest and trust in PABC and assured that their investment in company would yield greater dividends.

    The company started its operations in 2017 as the country’s only local manufacturer of aluminum beverage cans.

    PABC supplies beverage Can to the bottlers of all major carbonated drinks, including PepsiCo and Coca-Cola, in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35 per cent of the company’s sales in calendar year 2020.

    Established on a 20.9-acre piece of land in Faisalabad’s Special Economic Zone with a current rated capacity of 700 million cans per annum, PABC continues to enjoy a 10-year tax holiday. The company is increasing its rated capacity by almost 36 per cent to 950 million cans per annum by July next year.

    It has grown its revenue at an annualised rate of 18.7 percent in the last five years. In the third full year of its operation (2020), the company’s net profit amounted to Rs 610.7 million, up 314 per cent from 2019. It expects its bottom line to grow at 140 per cent in 2021.

  • Beverage Cans plans to raise Rs3.3 billion in Initial Public Offering

    Beverage Cans plans to raise Rs3.3 billion in Initial Public Offering

    KARACHI: Pakistan Aluminium Beverage Cans Ltd (PABC) is planning to raise at least Rs 3.3 billion by offering a 26 per cent stake to institutional and ordinary investors in an initial public offer (IPO) on the Pakistan Stock Exchange (PSX).

    Book building will take place on June 22 and 23, followed by public subscription on June 29 and 30, a statement said on Friday.

    The entire offer of 93.8 million ordinary shares, or 26 per cent of the post-IPO shareholding, will be offered through the book-building process at a floor price of Rs35 per share. Successful bidders will be provisionally allotted only 75 per cent of the issue size and the remaining shares will be offered to the retail investors at the strike price.

    It means PABC will raise at least Rs3.3 billion in the IPO. But based on the interest from investors during the book building process, the strike price can rise by 40 percent (Rs49 a share), thus helping the company collect Rs4.6 billion.

    Ashmore Mauritius PABC Ltd, a specialist emerging markets investment manager based in Mauritius, currently holds 51 per cent shareholding in the company while Liberty Group, a leading player in textile and power sectors, owns the remaining 49 per cent stake. With the exit of Ashmore post-IPO, Liberty Group, general public and Soorty Enterprises will own 54 per cent, 26 per cent and 20 per cent shareholding in the company.

    The company started its operations in 2017 as the country’s only local manufacturer of aluminum beverage cans. Until then, bottlers in Pakistan and Afghanistan relied on expensive imports to package their beverages in environment-friendly aluminum cans.

    PABC supplies to the bottlers of all major carbonated drinks, including PepsiCo and Coca-Cola, in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35 per cent of the company’s sales in calendar year 2020.

    Established on a 20.9-acre piece of land in Faisalabad’s Special Economic Zone with a current rated capacity of 700 million cans per annum, PABC continues to enjoy a 10-year tax holiday. The company is increasing its rated capacity by almost 36 per cent to 950 million cans per annum by July next year.

    It has grown its revenue at an annualised rate of 18.7 per cent in the last five years. In the third full year of its operation (2020), the company’s net profit amounted to Rs610.7 million, up 314 per cent from 2019. It expects its bottom line to grow at 140 per cent in 2021.

    Euromonitor International puts the size of Pakistan’s soft drinks market at 3.8 billion litres per annum. It expects the market to grow at a five-year annualised rate of seven per cent to reach 5.3 billion litres in 2025 on the back of rising purchasing power, urbanisation and favorable demographics.

    With the estimated market size of 275 million cans, aluminium beverage cans in Pakistan account for only 3.6 per cent of total soft drinks sales as opposed to the global average of 19 per cent.

    Growing can penetration may increase their sales to 650 million cans by 2025, delivering an annualised  growth rate of 19 per year. PABC will be its key beneficiary as the can imports are virtually non-existent due to high freight costs and duties.

    PBAC’s biggest export market is Afghanistan as the country does not have local beverage glass manufacturing facilities. It commands over 50 per cent market share, thanks to its contracts with key beverage bottlers, including franchisees of Coca-Cola and Pepsi, in Afghanistan.

    In addition, PBAC recently signed agreements and initiated exports to leading beverage players in the United States. North America accounts for more than one-third of the global consumption of aluminium cans mainly because of the environmental concerns.  The company is also in discussion with key beverage bottlers in Bangladesh and Iraq.

  • Knowledge Platform launches free online solution for exam preparation

    Knowledge Platform launches free online solution for exam preparation

    ISLAMABAD: To enhance continued support to teachers and students, Knowledge Platform has launched a free online examination preparation solution called ‘Exam Prep Master’.

    This solution will prepare SSC students, who are studying to appear in the Federal and Punjab Boards’ Matriculation examinations in July 2021.

    Knowledge Platform, a leading ed-tech organisation in Pakistan, is aware of the challenges schools, teachers, and students face to effectively prepare for the board examinations.

    Talhah Munir Khan, CEO, Knowledge Platform, stated: “Covid-19 has changed the way students are obliged to prepare for their board exams. With zero or less classes being held, the resources are limited for exam preparation.

    “To address this issue, we have come up with a solution suitable for students and teachers whereby they can prepare for their examinations in a short time span. We are obliged to assist our youth in these unprecedented and difficult times, and we will continue our support for them with innovative learning solutions.”

    ‘Exam Prep Master’ is an online preparation platform that includes a wide range of selected practice questions with solutions, based on past board examination papers.

    The aim is to support the students academically and reduce their exam-related anxiety by providing a real-life examination experience, thus, helping them prepare in limited available time for their board exams.

    The online preparation solution is comprised of Mock Exams, Animated Video Lessons, Exam Tips, Cheat Sheets and Past Papers. Other key features and benefits of this examination preparation solution include free of cost support for all, Grades Covered from 9th and 10th, biology, chemistry, mathematics, physics subjects are covered in this solution.

    Self-diagnostic test to check if students are ready for the board exam, two mock tests of 20 questions each per grade per subject, to help students practice, weekly publishing of additional mock tests and solutions within study groups, immediate availability of report card showing students’ strong and weak skills are the key features of this solution.

    Opportunity for students to study at their own pace using a mobile phone, tablet, or laptop in the comfort of their homes. Students may directly register for the online examination preparation programme from Learn Smart Pakistan.

    Knowledge Platform, the leading learning solutions company in Pakistan, is already working with 450,000+ students and 1,000+ schools across Pakistan.

  • Citi Pharma’s IPO oversubscribed; Rs2.32 billion raised in book building

    Citi Pharma’s IPO oversubscribed; Rs2.32 billion raised in book building

    KARACHI: The book-building process of Citi Pharma’s Initial Public Offer (IPO) has concluded with an oversubscription of 2 times, according to Topline Securities, advisor and book runner of the issue.

    “The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at Rs 32/share, 14.3% higher than the floor price of Rs28,” the leading API Manufacturer of the country said in a statement on Wednesday.

    Citi Pharma has raised Rs 2.32 billion in total, making it the second Pharma sector IPO in 23 years and the single largest IPO of 2021 till date . 

    “The response to the book building was far better than our expectations” said Mohammed Sohail of Topline Securities. In the last IPO (Organic Meat) managed by Topline investors have made a gain of close to 90% in a year.

    Several brokerages had had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 4 billion against the IPO’s book-building size of Rs 2 billion. Investors who bid at Rs32 will get approx. 10% of their bid quantity.

    The general public will subscribe to the remaining 18.1 million shares (25 percent of the total offer size) on June 23/24 at the strike price of Rs 32” the company said. 

    Rizwan Ahmed, CEO Citi Pharma, in his message thanked investors for their overwhelming response and vowed to ensure growth of their shareholders’ equity.

    Omar Salah Ahmed – Head of Corporate Finance & Advisory at Topline added: “Citi Pharma is one of the most unique companies in Pakistan’s pharma sector and this expansion will bring in a new phase for the Company. We wish them all the best for the future as well as the investors – who will no doubt be a part of a great growth story. Investors have responded to the future growth.”

    Citi Pharma plans to become first fully integrated listed pharmaceutical company in Pakistan, serving from raw material consumers to end medicine consumers.

    Citi Pharma has achieved a revenue growth from PKR 1,016 million in FY16 to PKR 3,528 million in FY20. Showcasing 36.2% CAGR in 5 years. The company recorded PKR 4,015 million in sales during 9MFY21 already surpassing last year’s sales. 

    Company is planning to expand its existing capacity of 3,600 tonnes per annum of paracetamol to 6,000 tonnes per annum. In addition, the company says it plans to add new APIs as well as a pharmaceutical formulation, or final products, to its existing product line.

    Citi Pharma also wants to build three manufacturing facilities, taking its total capacity to 200,000 vials/injectables per day, dry powder/suspension to 60,000 bottles per day, capsules to 4.2 million per day, and tablets to 4.5 million per day. These include dedicated manufacturing lines for penicillin, cephalosporin, and psychotropic and narcotics drugs.

  • Citi Pharma’s IPO book building starts June 15

    Citi Pharma’s IPO book building starts June 15

    KARACHI: Citi Pharma IPO’s book building phase is scheduled to held on June 15 and 16, 2021 where high net worth individuals and institutional investors will subscribe to 75 per centof the issue size (54.5 million shares), according to a statement issued on Monday.

    The book building will start at the floor price of Rs28 per share, including premium of Rs18 per share. Based on the interest from investors during the book building process, the strike price can rise by 40 per cent (Rs39.20 a share), thus helping the company collect Rs2.8 billion.

    After the book building process, successful bidders will be provisionally allotted 75 per cent of the issue size (54.5 million shares). The remaining 25 per cent (18.1 million shares) will then be offered to retail investors at the strike price. Citi Pharma aims to raise up to Rs2.8 billion by offering a 35 percent stake to institutional and ordinary investors.

    Citi Pharma is one of the largest active pharmaceutical ingredients (API) manufacturers in Pakistan and also makes formulations products. In particular, Citi Pharma sells paracetamol, an API used in painkillers, to GlaxoSmithKline that mixes it with other chemical salts and sells under the renowned brand of Panadol.

    Citi Pharma is raising new funds primarily to expand its existing capacity of 3,600 tonnes per annum of paracetamol to 6,000 tonnes per annum. The demand for paracetamol has surged in the wake of Covid-19. In addition, company plans to add new APIs as well as pharmaceutical formulations (final products) to its existing product line.

  • Engro Polymer plans to setup Circular Plastics Institute

    Engro Polymer plans to setup Circular Plastics Institute

    KARACHI: Engro Polymer and Chemicals Limited (EPCL) has planned to establish a Circular Plastics Institute (CPI), a not-for-profit thinktank, to promote research and development in Pakistan’s circular plastics economy, said a press release issued on Thursday.

    Pakistan faces the pervasive problem of plastic pollution as the country generated 3.9 million tons of plastic waste in 2020, and it has the highest percentage of mismanaged plastic in South Asia.

    In line with Engro’s central idea of solving the most pressing issues of our time, the CPI is aimed to be a pioneer establishment in Pakistan that will streamline efforts towards the circular economy through knowledge exchange and collaboration across Government, businesses, and civil society sectors.

    By rethinking its plastic problem, Pakistan can benefit from effective resource management to support job creation and innovation in the economy, while also conserving the environment through lower plastic waste.

    Globally, countries like Sweden and Germany are reaping the benefits of promoting a circular economy by making it a key part of government policy.

    The Circular Plastics Institute is expected to undertake research on municipal solid waste management, with a focus on plastics (specifically PVC). The Institute will be capable of advising legislation and policy to help Pakistan achieve its global commitments of a zero-waste future by 2030.

     It will also be aligned with the Global Development Practice to address UN Sustainable Development Goals, including sustainable cities and communities, responsible consumption, climate action, life below water, life on land and partnerships for the goals.

    According to Jahangir Piracha, CEO of EPCL, “While the demand for plastics is growing every year, the main problem is its responsible collection and disposal.

    “Customization of global best practices, coupled with local knowledge, is needed to reach our sustainable development goals. Once established, the Circular Plastics Institute will take us a step closer towards our vision of enabling a zero-waste future. This platform will also aim to increase economic activity in Pakistan by instilling circular economy principles, eliminating waste and safeguarding natural resources.”

    The CPI will be designed by Maleeha Habib, a student of Harvard University’s Extension School. “Engro’s establishment and support of CPI will open critical areas of opportunity for Pakistan including collaboration with international organizations, conservation of natural ecosystems, reduction of environmental impact, improvement of health and well-being for its citizens and economic development through innovation” said Will O’Brien, Capstone Advisor, Global Development Practice, Sustainability, Harvard University Division of Continuing Education.

    Acknowledging the need of CPI for Pakistan Fahd Khawaja, Chief Commercial Officer of EPCL said “It is important to provide a platform to all stakeholders including students, government officials, policy makers and public at large to educate them about the concept of circularity/circular economy and recycling.”

    A virtual signing ceremony of this initiative was organized in the presence of Jahangir Piracha (CEO of EPCL), Will O’Brien (Capstone Advisor), Judith Rodriguez (Capstone Instructor, Global Development Practice, Division of Continuing Education), Fahd Khawaja (Chief Commercial Officer of EPCL), Maleeha Habib (graduate student of Global Development Practice, Harvard University’s Extension School) and the Management team of EPCL and Engro Foundation.

  • Bestway Cement announces to set up new plant

    Bestway Cement announces to set up new plant

    KARACHI: Bestway Cement Limited on Thursday announced to setup Greenfield cement plant with a capacity of 7,200 tonnes of clinker per day at Mianwali.

    In a notice sent to Pakistan Stock Exchange (PSX), the company stated: “In view of increasing demand for cement in the country, Bestway Cement Limited has decided to set up a Greenfield cement plant with a capacity of 7,200 tonnes of clinker per day near Paikhel, District Mianwali along with 9MW waste heat recovery plant.

    “To that end the company has entered into an agreement with Sinoma International Engineering Co., Limited, PR China for EPC.”

    All necessary regulatory approvals and financial arrangements have been secured, the company said.