The trading in the shares of newly listed International Steel Limited (ISL) started at Karachi Stock Exchange (KSE) on Wednesday. This was the first listing of any company at KSE after a long gap of 12 months. The trading session today at KSE started with ringing of a traditional opening bell. Kamal Shoaib, Chairman ISL rang the bell.
Nadeem Naqvi, Managing Director of Karachi Stock Exchange; KSE Directors Muhammad Sohail and Abid Ali Habib; Director International Industries Limited (IIL) Riaz Chinoy; Fareed Alam CEO of AKD Securities; Haroon Askari Chief Manager (Operations) KSE and representatives of Habib Bank, AKD Securities, IIL and ISL were present on this occasion.
This 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 20,626,500 ordinary shares (18.75 percent of total offer) at strike price determined through the book building process i.e. Rs 14.06.
The general public portion of the offer comprised 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.
This offer was made by the International Industries Limited (IIL), the sponsor of ISL, out of its shareholding in the company. Habib Bank Limited was appointed as financial adviser of this offer. HBL and Cassim Investments (Private) Limited were the Lead Managers and Arrangers while Cassim Investments and AKD Securities Limited were the Joint Book Runners of this offer.
Kamal Shoaib, Chairman ISL while talking to media 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 (Colled Rolled Coils) and 150,000 of HDGC (Hot Dipped Galvanised Coils) to the supply deficit domestic market.
He said with one of the lowest per capita steel consumption of 12kgs versus regional average of 190kgs, Pakistan steel market offers huge potential. Moreover, the prevalent estimated supply shortfall of 400,000 and 300,000 tons of CRC and HDGC respectively, acts like an assured demand for company's product.
In addition to the stable demand, company's sponsors long association with local steel market further augments company's unique proposition.