The Lahore Stock Exchange (LSE) organised an IPO awareness session of Hascol Petroleum Limited (HPL). The session was attended by Chairman Hascol, Mumtaz Khan along with his team to share the company's financial performance before the TREC Holders and the investors of the Lahore Stock Exchange.
Among the advisors for HPL, Farid Alam, and Chief Executive Officer - AKD Securities graced the event as the financial advisor and Liaquat Ali appeared as the lead manager and the arranger. Liaquat Ali while delivering the presentation before the participants covered the financial details indicating the performance, the worth and the potential of the company.
Liaquat Ali highlighted that Hascol Petroleum Limited has applied for listing of its ordinary shares at the Lahore Stock Exchange and the Karachi Stock Exchange. He further briefed that the transaction has received an overwhelming response from both Institutional Investors and High Net Worth Individuals in the book building process. Against an issue size of 18,750,000 Ordinary Shares, the Company received bids for 132,545,778 Ordinary Shares with the issue being oversubscribed by 7.07 times with an additional premium of PKR36.50 per share above the floor price of PKR20 per share.
Based on the Dutch Auction Method, the strike price has been determined at PKR56.50 per share. After successful closure of Book Building, the Company is issuing the remaining 6,250,000 Ordinary Shares to General Public at the strike price of PKR56.50 per share. The dates for General Public subscription are April 8-9, 2014. Farid Alam, CEO AKD Securities, upon answering to the queries of the investors explained the procedure and the pre-requisites required in participating in the book building process.
On the occasion, the Managing Director, Lahore Stock Exchange, Aftab Ahmed Chaudhry applauded on the part of both the company and the active participation of the investors that build confidence on the Exchange by experiencing the demand and supply present in the capital markets through such events. Aftab while addressing the TREC Holders and a large number of investors appreciated the management of HPL for considering the listing for multiple benefits and enhancing company's brand exposure both locally as well as globally.
Aftab stressed that besides raising capital, listing has numerous benefits that add on to the overall wealth creation of the company, its employees and subsequently to the economy on the whole. It may be mentioned that HPL was incorporated in March, 2001 under the Companies Ordinance, 1984 primarily to take advantage of the petroleum sector deregulation and undertake a program for owing, leasing and renting oil storage facilities as well as importing petroleum products for its own account.
In February, 2005 Hascol was granted a full marketing license by the government of Pakistan and since then, Hascol has been engaged in developing a retail network under Hascol brand and by 31st December 2013 HPL had commissioned two hundred and ten retail outlets across Pakistan.
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