KARACHI: At least 10 Initial Public Offering (IPOs) of different companies were expected in 2021, according to industry analysts, of which two have been listed at the Pakistan Stock Exchange (PSX) in the past two months.
The two companies listed are Bank Alfalah TFC and Panther Tyre.
Analysts believe that if the country’s economy continues moving into the growth phase, more companies will come forward to list at PSX. The companies yet unlisted have a vast scope to grow after listing at the PSX, analysts claim.
Some companies recently listed, and those in queue, at the PSX are as follows.
Air Link Communication Limited:
Air Link Communication (ALCL), an importer and distributor of mobile phones in Pakistan, has was approved for listing at the Pakistan Stock Exchange (PSX) on January 1, 2021. The company’s aim is to raise a minimum of Rs 5.85 billion against 90 million shares to increase its import and distribution capacity and open more outlets nationwide.
ALCL, founded in 2011, is a leading distributor of mobile phones; it has a strong presence in Pakistan, with service centers across the country. Air Link is an importer and distributor of Huawei and Samsung mobile phones and accessories in Pakistan. It has around a 20-25 % market share of the total mobile businesses in Pakistan, according to Customs Import Data.
The Company is the official partner of Samsung Mobiles and Tablets in Pakistan and Afghanistan. It was also awarded “Platinum National Distributor” and “Sustainable Channel Growth Partner” by Huawei. The Company has a country-wide distribution network, consisting of 16 regional hubs linked to 1,000+ wholesalers and 4,000+ retailers for the ultimate selling of mobile phones and accessories across the country.
The company has planned to offer 90 million shares to corporate, high net-worth individuals, and retail investors through book building.
The lead manager and consultant for the issuance of shares, JS Global, has suggested the minimum share price of Rs 65. This means investors cannot offer a buying price below this rate in the auction “with a maximum price band of up to 40%,” according to the company’s prospectus available on the PSX website.
Service Footwear Company:
The PSX approved the listing of Service Footwear Company Limited on February 26, 2021. The company, however, did not disclose how much it will raise through this Initial Public Offering.
In order to raise capital, Service Industries Limited has planned to list its wholly-owned subsidiary, Service Global Footwear Company, at the PSX through an IPO.
The renowned shoe and tyre brand has separated its operations and business into different units, which ultimately created Service Industries Limited (SIL), as the holding company, and Service Global Footwear Company (SGFL).
Accordingly, the management of SIL and SGFL independently operate the businesses on a regular basis.
A Lahore-based company, Citi Pharma Limited is also planning to raise as much as Rs 2.85 billion ($18 million) through an IPO at PSX. It could be the biggest initial share sale by a drugmaker in Pakistan, Bloomberg reported about a week ago.
The company, which supplies raw material to the Pakistani units of GlaxoSmithKline Plc and Abbott Laboratories, plans to sell shares within the next six weeks, according to Chief Executive Officer Rizwan Ahmad, the agency said.
The initial public offering may exceed the Rs 2.8 billion raised by AGP Ltd in 2017, according to data compiled by Bloomberg.
“The company will use about two-third of the IPO funds to build a 50-bed hospital in Lahore. The balance will be used to help construct two new plants, which will start operations by the end of this year,” said Finance Director Amir Zia to Bloomberg.
Octopus Digital Limited, a subsidiary of Avanceon Limited, plans to go public in the beginning of next year and pull in Rs 1.5 billion.
The firm is a subsidiary of Avanceon Limited (AVN), which was listed at the PSX (formerly Karachi Stock Exchange) in late 2013.
Avanceon Limited (AVN) said that the company will announce the date of listing the digital IPO of its IT solution company, Octopus, next month.
Octopus Digital has planned to raise Rs 1.5 billion, through an offer of shares to retail investors at PSX. However, the date of the IPO will be decided in the next few weeks. BMA Capital is the lead manager of this IPO.
This will be the first IPO by a tech firm after a gap of five years, as Systems Limited was the last tech firm listed at the PSX.
AVN, the parent company, provides digitalisation and automation solutions to businesses, while Octopus, the subsidiary, provides maintenance for tech solutions at business houses.
Universal Network System Ltd
Universal Network System Ltd., a Pakistan courier service that counts the local units of Unilever Plc and Nestle SA as clients, is planning an IPO to expand its network and bolster its technology backbone.
The Karachi-based company, which operates the blueEX courier service, plans to sell new shares equal to 25 % of the company within the next two months, said Chief Executive Officer Imran Baxamoosa. He did not disclose any financial details.
The initial share sale will make it the first logistics company to list in Pakistan, and lure investors to a business that is crucial for the nation’s booming e-commerce industry, according to Topline Securities Pakistan Ltd., financial adviser for the IPO.
Market sources claim that Master Tiles and two other companies are also planning to list at the PSX, but currently they are at the initial stage, so the name or details of these companies cannot be disclosed.
Master Tiles is a registered Tiles and Ceramic Company in Pakistan, and it would be the second listed company of its kind at PSX, after Shabbir Tiles.