Secure Logistics Group to raise Rs1.5bn through IPO

January 24, 2022 (MLN): The Secure Logistics Group Limited (SLG), previously named Asia Capital Partners (Pvt.) Ltd has applied for listing on Pakistan Stock Exchange, seeking to raise Rs1.5 billion to expand the logistic business.

This will assist SLG to evolve into a Third Party Logistic (“3PL”) player with the capacity to provide a full range of factory to wholesaler logistic services, the company said.

As per the details disclosed in the prospectus, the company shall be issuing 55,555,556 ordinary shares (27.14% of the total post-IPO paid-up capital), having a face value of Rs10 each.

Of this, 38,280,066 ordinary shares (18.7% of the total post-IPO paid-up capital) are being issued by Secure Logistics Group as a new issue while 17,275,490 ordinary shares (8.44% of the total post-IPO paid-up capital) are being offered by Mr Pervaiz Afzal Khan, Mr Gulraiz Afzal Khan, and Ms Afshan Nasir (the sponsors) as an offer for sale.

The shares will be issued using the 100% book building method at a floor price of Rs27/- per share (including a premium of Rs17/- per share) with a maximum price band of up to 40%.

The bidders shall be allowed to place bids for 100% of the issue size and the strike price shall be the price at which 100% of the issue is subscribed.

However, the successful bidders shall be provisionally allotted only 75% of the issue size i.e., 41,666,667 shares and the remaining 25% i.e., 13,888,889 shares shall be offered to the retail investors.

Post-IPO, the share capital will increase from 166,435,068 ordinary shares to 204,715,134 Ordinary Shares.

For the aforesaid issue, Arif Habib Limited is the lead manager and book-runner while Habib Bank Limited is the banker to the book building portion of the Issue.

SLG was incorporated in 2013 and acted as the holding company for four wholly-owned operational entities including SecurLog (Pvt.) Ltd, SecureTrack (Pvt.) Ltd., Fist Security (Pvt.) Ltd., and TDM (Pvt.) Ltd.

These operational entities were involved in logistics, vehicle fleet management, security services and commodity trading/indenting businesses, respectively. The Company is primarily involved in the logistics business including long-haul and distribution (short-to-medium haul) segments covering the transportation of goods across the country.

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