April 12, 2022 (MLN): To exploit its potential to the optimal level, Supernet Limited (SNL), a wholly-owned subsidiary of Telecard is all set to stage its appearance on the Pakistan Stock Exchange (PSX) under Growth Enterprise Management (GEM) board by offering 21.1mn shares (18.81% of the paid-up capital) at a base price of Rs22.5 per share, including a premium of Rs12.50 per share.
The ceiling price band will not be more than 40% of the floor price while the market capitalization of the company would be Rs2.5 billion. The amount will help the company to manage its working capital, upgrade the technology segment by purchasing fixed assets and make investments in subsidiaries.
The transaction will be a mix of offer for sale and fresh issue with 8.9mn shares being offered for sale while 12.2mn shares will be a fresh issue. The company will be able to raise Rs275mn from the fresh issue.
The proceeds will be utilized to carry out capital expenditure related to improving connectivity services, Rs50mn will be invested in subsidiaries to carry out new lines of business and Rs100mn will be utilized as working capital, a report by AKD Securities noted.
The company aims to further its footing in providing cyber security services for which the company has attained some contracts recently. SNL has three wholly-owned subsidiaries (SuperInfra, Pheonix Global, and SES) and SuperSecure, which is 80% owned by SuperNet.
SuperSecure is in a prime position to capitalize on the increased adoption of cyber security measures by the public and private sectors, particularly in the aftermath of the recently approved Pakistan’s Cyber Security Policy. In this regard, the company has already entered into a contract with a major bank.
The company expects revenue from high-capacity satellite solutions to improve as well with increasing data usage and connectivity across the country where a decline in satellite costs can further propel telecom operators towards increased usage of satellites against cables.
In this regard, the launch of 3G and 4G services in Gilgit Baltistan will be a key trigger point of growth for this revenue stream.
Overall, the company expects topline to increase with a CAGR of 22% for FY21-24 where turnkey projects are also expected to play a vital role. Already, contracts with Rs1.3bn have been signed by the company under this vertical, the report added.
SNL was founded as a Data Network Operator and Internet Service Provider in 1995, and the mainstay of its business has been providing Connectivity Solutions. The company offers a range of services under the two verticals namely, connectivity and beyond connectivity.
Connectivity Solutions majorly include the provision of data communication links for intra-city, inter-city and international locations for customers and the provision of internet access service in conjunction with connectivity solutions.
To note, the GEM board is a listing platform created to facilitate growth enterprises whether small, medium, or greenfield businesses for their capital raising needs.
GEM Board does not only help such enterprises in expanding, diversifying and raising capital but it also helps the development of the Capital Market of the country which is important for increasing trade, commerce and industry.
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