Service Global Footwear Limited (SGFL) on Monday announced that it will offer its 10,221,675 shares through general public on 12th and 13th April at a strike price of Rs 53.2 per share as determined through the book building process.
The company, through the book building process, has seen a tremendous response from investors with an interest rate of Rs 8.95 billion against the issue size of Rs 1.55 billion, an oversubscription of 5.8 times. The overwhelming participation from investors helped increase the price to maximum limit of Rs 53.2 per share.
SGFL is the largest footwear exporter of Pakistan since the last decade. In the last two years, it has accounted for over 40 per cent of the total leather footwear exports of the country. SGFL exports more than 95 per cent of its total production. In 2020, it exported footwear to more than 20 countries over five continents.
The Company supplies footwear to global brands like Zara, Caprice, Diana Ferrari, Dockers, Jack & Jones and London Rebel, among others. The principal purpose of the issue is to invest the amount raised as equity in Service Long March Tyres Ltd. (“SLM”) and become a stakeholder of approximately 18.91 per cent of the total shareholding of SLM. SLM is the first All Steel Radial Truck & bus (TBR) Tyre manufacturing unit in Pakistan, being setup through a JV between Servis Group and Chaoyang Long March of China.