March 22, 2019 (MLN): For many growing organizations, the Initial Public Offering (IPO) is a beacon of success. If a company has ramped up sales, built strategic relationships, sustained growth and is ready for the big show with a fresh infusion of cash, it’s time to take its business to the next level.
Following the above-mentioned strategy, Interloop Limited, the world’s leading socks maker and exporter recently made its successful entry through the largest private sector initial public offering on March 14, 2019, placing itself amongst the top 50 companies listed on the Pakistan Stock Exchange by market capitalization.
A company is only ready to go public when it has a predictable, scalable business which is the key to being a public company. A company needs predictability in its business where it can forecast and deliver numbers accurately quarter over quarter.
This seemed right for Interloop Limited, as this IPO was well received by all investor classes including banks, asset management companies, insurance companies, foreign investors and high net worth individuals.
Recently, Director Finance Interloop Limited, Mr. Muhammad Maqsood spoke to Mettis Link News in a digital interview and while expressing his views on this overwhelming response by investors he said that, “The response received was even more impressive in the light of the difficult market conditions”.
When asked about the benefits Interloop can reap by going public he replied that, “Going public was the natural next step for Interloop. Best practices of corporate governance and transparency are already well integrated at Interloop and we also have an employee stock option scheme. Other than capital raising, it is our belief that being a listed company will add to the company’s sustainability and stature as well as allow the general public to share in our success”.
In the capital market, one should remember that going public is just the beginning of a process. Ringing the bell on the day you become public is like the start of the marathon. But running the marathon requires sustaining a successful public company by attaining the projected financial measures communicated to the investor community.
Replying to the aforementioned fact he said, “We are committed to what has been our modus operandi since inception –responsible & ethical manufacturing, sustainability, wellbeing of stake holders and commitment to quality and technology. We will continue to focus on the above and continue to deliver for our stakeholders”
He further added that, “The funds we raised through this IPO will be utilized in Expansion of Hosiery manufacturing and adding a new denim unit. Both of these plants will be equipped with latest technology”.
In response to recent PKR devaluation which affected many export-oriented industries, and as Pakistan’s seventh largest exporter generating approximately 90% of its revenue through exports, he said, “As an export-oriented company, Interloop offers a hedge against PKR devaluation. Interloop has always focused on efficiency and relies on its operations to drive profitability. Having said that, devaluation should help Pakistani exporters to be more competitive. Although we do not believe on earning profit through such windfalls, but it definitely affects top and bottom lines positively”.
The company has recently entered in Denim Apparel Segment as part of business expansion. While commenting on what kind of response they are expecting from local customers and international customers, he said that, “Interloop’s denim facility will employ the latest technology and will be a certified Lead Platinum plant which will provide us an edge over competitors. We are already serving some of the world’s largest retailers and brands and are hopeful we will be very competitive in the denim segment as well”.
With difficult economic and market conditions that are prevailing in the economy, “we are committed to the use of latest technologies in manufacturing which allows us to respond timely to fast changing trends in today’s world. Our focus on efficiencies makes us competitive on global scale. We believe in sustainability of project, people and planet. We do not see any big challenge in future, but nobody can say anything about force majeure”, he concluded.
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