June 17, 2021 (MLN): Another IPO is going to hit the trading floor before ending the current fiscal year, as PSX has become the attractive marketplace for the investors owing to the government’s pro-growth incentives and policy measures that keep the sentiments of investors intact.
Optimizing the present favorable market status, Pakistan Aluminium Beverage Cans Ltd (PABC), the first and only aluminium beverage cans manufacturer in Pakistan, is all set to go public as it plans to issue 93,888,000, 26.00% of Paid-up Capital.
With respect to the current shareholding of PABC, 51% shares are owned by Ashmore Ltd and 49% share are held by Liberty group.
According to the report by Arif Habib Limited, being the largest part, Ashmore Mauritius PABC Limited is the offeror. The 26% of paid-up capital will be sold at the price range between Rs35/share to Rs49/share while the size of transaction will be in the range of Rs3,286mn to Rs4,601mn.
In addition, the post listing market capitalization will be in between Rs12,639mn to Rs17,694mn.
The entire Offer will be offered through book building method. The bidders shall be allowed to place bids for 100% of the Issue size. However, the successful bidders shall be provisionally allotted only 75% of the Issue size i.e. 70,416,000 shares and the remaining 25% i.e. 23,472,000 shares shall be offered to the retail investors, report added.
The book-building phase will be held on 22 and 23 June, 2021 while the public subscription will start from June 29 and end at June 30, 2021.
As per the report, Arif Habib Limited is the Lead Manager and Book Runner for the issue.
PABC aims to raise up to Rs3.3bn by offering a 26% stake in the firm through a first-time share sale in Karachi. The listing comes as the Can maker is eyeing potential expansion.
Pakistan may become one of the notable markets for cans as can penetration have the potential to Increase from current 3.6% to 5-6% by 2025 which will increase can sales in the country to 650 Million cans, delivering a CAGR of 19%.
With respect to the expansion in export markets, PABC has started selling to new customers in USA and Tajikistan. In addition, PABC serves more than 50% of the Afghanistan beverage market and recently agreed to supply another two large companies in the country.
However, export opportunities in new markets will be more meaningfully capitalized after capacity expansion in 2022, the report said.
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