Agha Steels all set to raise upto Rs 5 billion from the biggest steel IPO in 5 years

September 10, 2020 (MLN): The Pakistan Stock Exchange is all set to witness the biggest IPO in recent years via Agha Steel Industries Limited, which is planning to raise up to Rs. 5 billion some time around this month. Moreover, the company is planning to sell 120 million shares at a floor price of 30 rupees apiece.

According to Bloomberg, the Chief Executive Officer of the company, Hussain Agha has said the steelmaker plans to almost triple its capacity to produce gray steel bars, which is used for building everything from homes to dams.

This development comes after the numerous perks and benefits provided by the Prime Minister in his construction package, which also includes allowing tax evaders to invest illicit cash into building homes.

The construction package, along with the projects being carried out and financed by China, has led to a skyrocketing demand. This has naturally resulted in higher demand for the products of Agha Steel as well.

Agha Steel has also provided material for several coal-fired power plants financed by China, and is now bidding for five upcoming dam projects. The CEO of the company in this regard has said that a contract to supply steel for the Mohmand dam can generate 10 billion rupees in revenue, or 63% of its sales last year.

The company is going through its second expansion, which will see its steel-bar capacity increase to 650,000 tons a year from 250,000 tons. It almost doubled its billet capacity to 450,000 tons two years ago, the report added.

Copyright Mettis Link News