April 9, 2021 (MLN): Service Global Footwear Limited (SGFL) the largest footwear exporter of Pakistan since the last decade, has closed its book-building successfully.
The company witnessed historic book building as the IPO was over-subscribed by 5.8x with a strike price clocked in at Rs 53.2 per share, i.e. 40% higher than the floor price of Rs 38 per share.
Arif Habib Limited, who was the consultant to the Issue for this IPO, said that SGFL’s IPO has been one of the most oversubscribed ECM transactions of recent times.
The company has received total participation of Rs. 8.9 billion against issue size of Rs. 1.5 billion, at the floor price of Rs 38 per share.
Out of the total provisional allocation of 40,887,500 ordinary shares, 75% of the issue size i.e. 30,665,625 Ordinary Shares has been allotted to Successful Bidders and 25% of the issue i.e. 10,221,875 Ordinary Shares has been offered to Retail Investors.
Among successful bidders, around 11.8 million shares have been allocated to Security Brokers, 7 million to Mutual Funds, 4.3 million to Mutual Funds, 5 million to Institutional investors, 4 million to Commercial Banks, 2.2 million to Development Financial Institutions, while, 0.167 million and 0.107 million shares have been offered to Pension Funds and Mudarabas respectively.
Arif Habib Limited being the Consultant to Issue for this IPO, informed the exchange that since this issue is being made through 100% book building with 25% allocation to retail investors, therefore, underwriting of the retail portion is not required.
In case, the issue remains unsubscribed, the unsubscribed shares shall be allotted to the successful bidders on a pro-rate basis. The successful bidders have already given undertakings to subscribe to such unsubscribed shares on a pro-rata basis, it added.
