After completion of book-building process, 27.506 million shares of International Steel Limited (ISL) have been offered to general public at a price of Rs 14.06 per share, including premium of Rs 4.06 per share, through initial public offering (IPO). This offer has been made by the International Industries Limited (IIL), the sponsor of ISL, out of its shareholding in the company.
The date of public subscription has been announced from May 3, 2011 to May 4, 2011 during banking hours. Habib Bank has been appointed as financial adviser of this offer. HBL and Cassim Investments (Private) Ltd are the Lead Managers and Arrangers, while Cessim Investments and AKD Securities Limited are the Joint Book Runners of this offer.
A detailed presentation about this offer was arranged at the Karachi Stock Exchange (KSE) on Wednesday. Towfiq H Chinoy, Chief Executive Officer of International Industries Limited, Riaz Chinoy, Director IIL, and Khurram Iqbal Khan gave a detailed presentation about the offer. They also briefed the participants about the company.
They said that the book-building portion of 61,875,500 ordinary shares has been successfully closed. The present issue of 27,506,000 ordinary shares is being made to the general public at the price of Rs 14.06 per ordinary share (ie the strike price was determined through book building).
They said that the present offer consists of 110.008 million ordinary shares (25.29 percent of the total paid up capital) of face value of Rs 10 each. The book building portion of the offer comprised of 61,875,500 ordinary shares (56.25 percent of the total offer) at a floor price of Rs 12.90 per share while pre-IPO allocation to foreign investors comprised of 20,626500 ordinary shares (18.75 percent of total offer) at strike price determined through the book building process ie Rs 14.06. The general public portion of the offer comprises of 27.506 million ordinary shares (25 percent of the total offer) at a price of Rs 14.06 per share including premium of Rs 4.06 per share.
About the company, they said that the 250,000 tons state-of-the-art Rs 8.7 billion steel complex is the first of its kind in Pakistan, which envisioned to sale 100,000 tons of CRC (Cold Rolled Coils) and 150,000 of HDGC (Hot Dipped Galvanised Coils) to the supply deficit domestic market.
They said that with one of the lowest per capita steel consumption of 12 kg, versus regional average of 190 kg, Pakistan steel market offers huge potential. Moreover, the prevalent estimated supply shortfall of 400,000 tons and 300,000 tons of CRC and HDGC respectively acts like an assured demand for company's product. In addition to the stable demand, the company's sponsors' long association with local steel market further augments the company's unique proposition.