KARACHI: The first GEM Board listing of an IT company received an overwhelming response from institutional investors, holders of the Roshan Digital Accounts and other high-net worth individuals as the Supernet Limited raised Rs 475 million in total, making it the largest such listing at the GEM Board of Pakistan Stock Exchange (PSX), the company said on Wednesday.
Supernet Ltd raised Rs 475 million through book-building at the GEM Board of PSX. The process concluded with an oversubscription to the tune of 1.4 times, the company said. The total bids received were worth Rs 659 million while the strike price clocked in at Rs 22.50.
Apart from local investors, foreign financial institutions also took keen interest in the initial offering of the first IT company on the GEM Board. The issue consists of 21,111,121 ordinary shares, representing 18.81 percent of the total post-offering paid up capital of Supernet Ltd with face value of Rs 10 each.
The entire issue was offered through book building on April 12-13 at a Floor Price of Rs 22.50 per share, including a premium of Rs 12.50 per share.
Supernet has been offered at FY22 PE of 6.7 versus average IT sector PE of 22X, offering significant value to the investors.
“The offering will help revive new listings at PSX once again. There is a lot of demand for technology-related stocks and that is why we saw higher than anticipated bids in the book building of Supernet,” said Mohammed Sohail, the CEO of Topline Securities, who acted as adviser and book runner to the issue.
In his statement, CEO of Supernet Ltd Jamal Nasir thanked the institutional as well as individual investors for taking interest and showing confidence in his company and expressed the hope that their investment would yield great returns.
“We have offered great value to our investors and their trust and investment would grow with Supernet,” he said. The Supernet Group is expanding aggressively into cyber security, power solutions and IT and infrastructure solutions businesses. The proceeds from listing will be utilised to finance the expansion plan.
For expansion into new market segments, Supernet has set up two new subsidiaries: the Supernet Secure Solutions Private Limited and Supernet Infrastructure Solutions Private Limited.
Yet another subsidiary, the Phoenix Global (Supernet Global Solutions), is a UAE-based company that offers a wide range of IT and communications solutions to its international clients. Supernet’s clients include major banks, mobile phone operators, leading MNCs, and government and defence institutions.
Founded in 1995, it is a leading telecommunications service provider and systems integrator. The company offers a full portfolio of local-to-global integrated communications infrastructure solutions to telecoms, defence organisations, and private and government firms and has a pool of highly trained and experienced personnel spread across more than 200 cities and towns.
Copyright Business Recorder, 2022
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