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Tag: Initial Public Offering

  • Supernet scrip receives overwhelming response

    Supernet scrip receives overwhelming response

    KARACHI: Supernet Limited, the first IT company to be listed at GEM Board of PSX, has received overwhelming response by investors on first day of its book building on April 12, 2022. The book buying is continued on April 13, 2022 (today) too.

    With an oversubscription of 1.99% on first day of its book building, Supernet received total bids of 21,530,720 shares against an offer of 21,111,121 shares, over subscription by 1.99% or 419,599 shares on Day 1.

    READ MORE: Supernet awarded Shariah screening certificate

    The first ever GEM Board listing of an IT company received an overwhelming response from institutional investors and high-net worth individuals.

    Supernet has a target to raise betwen 475 million to 666 million through listing at GEM Board of PSX.

    READ MORE: Supernet set to raise Rs475 million through initial offering

    Apart from local investors, foreign financial institutions also took keen interest in the initial offering of first IT company on GEM Board of PSX.

    The issue consists of 21,111,121 Ordinary Shares, representing 18.81 per cent of the total post-offering paid up capital of Supernet of face value of Rs10 each.

    The entire issue was offered through Book Building on April 12-13 at a Floor Price of Rs22.50 per share, including premium of Rs12.50 per share.

    READ MORE: Supernet wins ZTBL projects worth Rs450 million

    Recently, Supernet Group is aggressively expanding into Cyber Security, Power Solution and IT & Infrastructure Solutions business. The proceeds from listing will be utilized to finance the expansion plan.

    For expansion into new business segments, SNL has set up two new subsidiaries: Supernet Secure Solutions Private Limited and Supernet Infrastructure Solutions Private Limited . Another subsidiary, Phoenix Global (Supernet Global Solutions), is a UAE based company that offers a wide range of IT & Communication solutions to its international clients. Supernet’s clientele include major banks, mobile operators, leading MNCs, government and defence institutions, etc.

    READ MORE: Supernet, Avara awarded project for supply, maintenance

  • 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.

  • 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.

  • Agha Steel’s IPO receives overwhelming response

    Agha Steel’s IPO receives overwhelming response

    KARACHI: The Initial Public Offering (IPO) of Agha Steel has received overwhelming response from investors as it was oversubscribed at the book building phase on Wednesday.

    The IPO received an overwhelming response from institutional investors and high net worth individuals as the strike price clocked in at Rs32 per share, higher than the floor price of Rs30, a statement said.

    The book-building phase of the Initial Public Offer (IPO) of Agha Steel concluded with investors oversubscribing it by as much as 1.63 times.

    This means Agha Steel is going to raise Rs3.8 billion in total, making it the largest IPO in the steel sector and the second-largest IPO in the private sector.

    Brokers and investment advisory firms had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs4.4 billion against the IPO’s book-building size of Rs2.7 billion.

    The general public will subscribe to the remaining 30 million shares (25 percent of the total offer size) on Oct 14-15 at the strike price of Rs32.

    The company will use IPO proceeds to finance the expansion of its re-rolling capacity from 250,000 metric tons to 650,000 MT. It will increase the reinforcing bar production capacity by 160 per cent.

    Brokerage houses anticipate steady growth in the company’s bottom line owing to a substantial rise in construction activities across the country. The main product of Agha Steel is reinforcing bars that are used in the construction of megastructures, roads, bridges, skyscrapers and homes.

    In a research report last week, AL Habib Capital Markets stated that it expected the share price of Agha Steel to hover around Rs57 by June 2022. The target prices stated by Pearl Securities and KASB Securities are Rs50 and Rs42, respectively.

    In a message on social media, Agha Steel CEO Hussain Iqbal Agha expressed his gratitude to investors and their historic overwhelming response. He vowed to ensure growth of their shareholders’ equity.

  • Companies listing simplified to promote capital formation: SECP

    Companies listing simplified to promote capital formation: SECP

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said amendments have been made to regulations related to Initial Public Offering (IPO) to make listing simplified for promoting capital formation through securities market.

    In a statement on Friday, the SECP said that it revamped initial public offering (IPO) regime to make the IPO process simple, cost effective and more efficient.

    The amendments in IPO Regulations 2017, have been made after thorough consultation with market participants with an objective to promote capital formation by facilitating issuers and safeguarding the interest of general public by enhancing disclosures.

    In the new set of regulations, the objective eligibility criteria for listing of companies have been simplified to promote capital formation through securities market.

    Moreover, the issuers that have a track-record of less than three years and were not making profit from last two years are allowed to raise capital from securities market.

    However, such Issuers are required to submit a business plan and provide enhanced risk disclosures in the offering document for prospective investors.

    Further, with perspective of providing ease and reducing cost of IPOs, the requirement of submitting audited accounts has been reduced from 5 to 2 years.

    In addition, the time frame relating to submission of progress report by the Issuer has been increased from quarterly to half yearly basis.

    To safeguard the interest of the general public, certain parameters for green field projects (GFPs) have been introduced.

    The said parameters include: (i) At least 51% equity contribution by the sponsors; (ii) successful business track record of the sponsors; (iii) experience and skills of the management to run GFP; (iv) mandatory financial close; (v)risk-based disclosure in the offering document etc.

    Further, an exit offer mechanism has been introduced to protect the investors in case of change in the principal purpose of the issue.

    In order to encourage foreign investment in the country, the Book Runner has been allowed to waive the margin requirement of the institutional investors including foreign investors.

    Moreover, related parties have been allowed to perform different roles in the same IPO Transaction. The new IPO regime is a shift towards disclosure-based regime.

    Disclosures pertaining to principal purpose of the issue, risk factors, share capital, financial information, management of the issuer, legal proceedings and overdue loans are made part of the prospectus.

    A new section titled summary of the Prospectus has been introduced to help investors better understand the offering document.

    Moreover, to facilitate small enterprises, startups and Greenfield companies that aspire to raise funds through capital markets, the SECP has already introduced an alternate board namely Growth Enterprise Market (GEM) at PSX.

    The GEM is in addition to PSX’s main board for listing and trading of equity securities.