Pakistani rival of Google Maps plans IPO

TPL Corporation is a technology driven conglomerate with investments across Life Insurance, General Insurance, Real Estate, Security, Asset Tracking, Technology, Internet of Things, Navigation and Mapping.

TPL Trakker Ltd which is a subsidiary of TPL Corp has been one of the industry leaders in the GPS tracker industry in Pakistan. They’re in the business of GPS, GSM & Satellite Mobile Asset Tracking Management and Information Solutions and provide services such as location tracking, fuel monitoring, reporting, safety and compliance.

TPL Trakker’s portfolio includes car tracking units, software, operational and project management expertise, deployment, data evaluation, and consultancy. It is the only vehicle tracking company to be assigned a long-term financial status rating of A- by the Pakistan Credit Rating Agency Limited (PACRA).

Recently TPL Trakker partnered with NITB - National Information Technology Board and NCOC- National Command and Operation Center to support their national efforts in Pakistan’s fight against COVID-19. Through this collaboration, TPL Maps, the mapping arm of TPL Trakker and also known as the local rival of Google Maps, will play a critical role in tracking the hotspots during this pandemic by mapping, analysing, and reporting cases across major cities. The interactive map marking hotspots will help provincial governments in imposing geo-based smart lockdowns, making them efficient and effective.

The company announced that they will be conducting an Initial Public Offering (IPO) of shares later this month in accordance with the Public Offering Regulations 2017. In an IPO, a company offers shares to the public in return for capital it can use, usually for expansion or operational purposes.TPL Trakker’s IPO is being offered at a steep discount of 30%-80% compared to global comparables. According to a report by Bloomberg , TPL Trakker Ltd. plans to raise around 1.4 billion rupees. The issue is being offered to the general public on Fixed Price method and the base offer is 100% underwritten.

TPL Trakker said in a filing that they will offer 115.7 million shares, including 57.4 million units through a green-shoe option, or over-allotment, at a fixed price of 12 rupees per share .A green-shoe option is an over-allotment option. In the context of an initial public offering (IPO), it is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

The subsidiary of TPL Corp Ltd. will use the funds for regional expansion of IoT solutions particularly in the Middle East, investment in developmental IT infrastructure, capital expenditure for further development of mapping data and location based solutions, working capital for Connected Car & IIoT solutions, and repayment of related party balance.

Habib Bank is the corporate advisor and Arif Habib Ltd is the consultant for this transaction. The underwriters are Habib Bank Ltd , Arif Habib Ltd, AKD Securities Ltd, Bank Al Habib, Intermarket Securities Ltd, Next Capital Ltd and Topline Securities whereas the bankers to the issue are Habib Bank Ltd, Meezan Bank Ltd, Bank Al Habib , Habib Metropolitan Bank , Muslim Commercial Bank and Allied Bank Ltd.

TPL Trakker is also looking forward to sell a quarter of the company’s stake to a couple of Chinese companies. Sarwar Ali Khan, chief executive officer of TPL Trakker said in an interview conducted by Bloomberg, “Separately, China Transportation New Technology Shanghai Ltd. and CCCC Industrial Investment Holding Ltd. are exploring to collectively acquire a 25% stake in the company by buying shares from the market after the listing.”