KARACHI: Pakistan Stock Exchange (PSX) held a gong ceremony to celebrate the listing of Fast Cables Limited (FCL). Fast Cables is a manufacturing company producing electrical cables and conductors in Pakistan. Fast Cables’ is the fifth listing via an initial public offering (IPO) on Pakistan Stock Exchange in the fiscal year 2023-24.
Present at the gong ceremony were Ghulam Mustafa Kausar, Chairman; Kamal Amjad Mian, Managing Director; and senior management of Fast Cables Ltd.
Muhammad Farid Alam, CEO AKD Securities Limited, along with his team were also present at the occasion. AKD Securities Limited was the Joint Lead Managers/ Consultants to the Issue. The representatives of the participating banks to the Issue were also present at the ceremony.
The Issue consisted of 128,000,000 ordinary shares or 20.35 percent of the total post-IPO paid-up capital of Fast Cables Ltd, at face value Rs 10/- each. The method of offering was book building method at a floor price of Rs 23.5/- per share with a maximum price band of up to 40 percent, i.e. Rs 32.90 per share.
The bids were placed for 100 percent of the Issue size. However, the successful bidders were provisionally allotted 75 percent of the Issue size, i.e. 96,000,000 shares, while the remaining 25 percent of the Issue size, i.e. 32,000,000 shares, were offered to the retail investors through the general public subscription.
The book building phase of the Issue generated significant interest from investors with the Issue being oversubscribed by 1.57x by value with a strike price of Rs 24.45 per share being determined.
Applications for an amount totaling Rs 4,702 million against the issue size of Rs 3,008 million were received. As many as 642 investors took part in the book building, of which 561investors were successful.
For the public subscription portion, 3959 applications for 14,201,000 shares amounting to Rs 347,214,450/- were received. The public offering received interest from varied investors from several banks with many investors applying through the PSX E-IPO system as well. The PSX E-IPO system generated interest from investors in the form of 607 applications received for 1,113,000 shares amounting to Rs. 27,212,850/-.
A total amount of Rs 3,129.606 million was raised from the book building and general public subscription of the Issue. The proceeds raised through the IPO will be utilized for acquisition of new land, construction of a state-of-the-art building, installation of new plant & machinery and repayment of debt associated with the machinery and building components.
Copyright Business Recorder, 2024
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