Secure Logistics Group plans first 2024 IPO, eyes Rs750m

January 05, 2024 (MLN): Secure Logistics Group Limited is aiming for an initial public offering in Pakistan that could raise at least Rs750 million ($2.7m), following a surge in the country’s stock market, Bloomberg reported.

The Islamabad-based company plans to sell about 63m shares in the first quarter of this year, according to Shahid Ali Habib, chief executive officer at Arif Habib Ltd., which is the sole financial adviser and bookrunner for the deal.

The proceeds will be primarily used to reduce the company’s debt, he told Bloomberg.

Secure Logistics will become Pakistan’s first listed logistics company once the share sale is completed.

The nation’s benchmark KSE-100 Index has rallied about 50% in the last six months, making it Asia’s best-performing market after the government secured a bailout from the International Monetary Fund to avert a default.

Pakistan’s IPO market almost ground to a halt last year as investors were wary about the country’s potentially defaulting. Only one company went public and raised nearly $1.6m in 2023, according to data compiled by Bloomberg.

A revival of the IPO market could provide a cheaper alternative funding channel for firms in Pakistan, where benchmark interest rates are at record 22%.

The country’s inflation accelerated for the second-straight month in December despite the high borrowing costs.

Secure Logistics has a total of 283 transport vehicles, according to Shahid Habib. The company’s revenue is projected to increase to Rs2.1 billion in 2023 and grow by another 28% in 2024, he said.

Tracing its roots to 2011, Secure Logistics counts Saudi Arabia’s Bugshan Group and Karandaaz Pakistan among its backers, its website shows.

About 95% of cargo transportation in Pakistan is carried out through the road network using trucks and other commercial vehicles, according to government data.

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