Pakistan’s Secure Logistics Group Ltd (SLG) is planning an initial public offering (IPO) at the Pakistan Stock Exchange (PSX), aiming to raise at least Rs600 million ($2.16 million).
“The scheduled book building dates are March 27th and 28th,” said Arif Habib Limited (AHL), the sole financial adviser and bookrunner for the deal, on Saturday.
The Islamabad-based company, which offers solutions specialising in logistics and vehicle fleet management services across the country, plans to sell 50 million shares at a floor price of Rs12 per share.
Secure Logistics Group plans IPO, eyes raising at least $2.7mn: report
SLG has also arranged pre-IPO equity of Rs585 million from Saudi Bugshan (Rs248 million) and Karandaaz Pakistan (Rs237 million) who are already their strategic investors.
As per the brokerage house, the primary purpose of the equity capital raising is to “deleverage the balance sheet in an unprecedented high interest rate environment, enhance company’s technology infrastructure base to complete the on-going Tech-Pivot and initiate expansion into the regional markets”.
In Q1 CY2019, the company successfully closed Rs600 million convertible Term Finance Issue. “The funds were utilised for major fleet expansion by way of an addition of 54 prime movers and semi-trailers each.”
In 1Q CY20, SLG successfully raised capital of Rs1.2 billion through equity issue, and the funds were mainly used to expand business operations by acquiring 34 Prime Movers/Semi-Trailers and 62 Distribution Vehicles, along with partial debt repayment, the brokerage house said.
As per AHL, the company posted an EPS of Rs2.28 for CY2023 implying P/E of 5.39x at a floor price of Rs12.
Back in 2022, SLG, in a notice to the PSX, had said that it aims to Rs1.5 billion through an IPO.
The company back then said that it would utilise the funds generated from the IPO to expand operations. However, the company did not pursue the IPO channel back then.
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