SLG’s public subscription falls short

April 08, 2024 (MLN): The general public subscription of Secure Logistics Group Limited (SLG) of 12.5 million shares i.e. 20% of the total issue size was undersubscribed as the offering attracted applications for just 2.82m shares.

Arif Habib Limited, the consultant to the issue for this IPO, disseminated this information through a notice issued to the Pakistan Stock Exchange (PSX) today.

The process of general public subscription was held on April 02 and 03, 2024, both days inclusive at the price of Rs12 per share.

The issue offered to retail investors resulted in total applications for 2.82m ordinary shares worth Rs33.83 million.

As per the subscription details, out of the total 740 applications received, 230 applicants bid for up to 500 ordinary shares, 205 applicants bid for between 501-1000 ordinary shares, 26 applicants bid for between 1001-1500 ordinary shares, 62 applicants bid for between 1501-2000 ordinary shares, and 217 applicants bid for above 2000 ordinary shares.

To recall, the overall issue size of Rs600m was oversubscribed with strike price of Rs12 per share.

A diverse array of investors participated in the book-building process. Institutions accounted for a substantial 76% of the total participation, with high net-worth individuals also contributing significantly, comprising 24% of the overall subscription.

Before the IPO, SLG conducted a pre-IPO capital raise of Rs585m, with leading institutional shareholders such as the Saudi Bugshan Group and Karandaaz Pakistan.

This pre-IPO capital raise, combined with the IPO proceeds, culminated in a substantial total capital raise of Rs1.19 billion.

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