KARACHI: Air Link Communication Limited’s book building process is scheduled on August 30 and 31, 2021 with which the Company intends to raise Rs5.9 billion (new issue: Rs 3.9 billion, offer for sale: Rs 1.95 billion) at a base price of Rs 65/share. It is the first of its kind listing at Pakistan Stock Exchange, says an analyst.
Air Link is one of the leading distributors of mobile phones in Pakistan with a nationwide distribution network linked to 1,000-plus wholesalers and 4,000-plus retailers.
The company eyes to become the country’s first fully vertically integrated mobile phone company and with that intention it has set up a state of the art Mobile Assembling Facility with a production capacity of more than 400,000 units per month. The capital being raised through IPO (Rs 1.95 billion out of Rs 5.9 billion is offer for sale) will be utilized for working capital requirements which are estimated around Rs 4.9 billion and will be supplemented by Rs 1.0 billion raised from other short-term financing facilities.
Pakistan’s smart phone market has immense potential as the smart phone users as a percentage of total population is currently around 18 percent, Jehanzaib Zafar at AKD Securities said. Pakistan’s mobile market is expected to go for transition from feature phones to smart phones as cellular mobile operators are likely to phase-out their 2G networks as 4G becomes more widely available and the proportion of low-cost smart phones increase, he added.
Copyright Business Recorder, 2021
Comments
Comments are closed.