Secure Logistics Group Limited (SLG) is looking to raise Rs1.5 billion through an Initial Public Offering (IPO) at the Pakistan Stock Exchange (PSX), becoming the second company after Regal Automobile Industries Limited to apply for listing at the bourse in 2022.
The company will issue 55,555,556 shares at a floor price of Rs27, according to a notice posted on the PSX website.
The company said that it will utilise the funds generated from the IPO to expand operations.
Earlier, Regal Automobile Industries Limited applied for listing on the PSX to raise Rs800 million, as the company seeks to invest in its electric vehicle (EV) assembly line.
SLG, previously named Asia Capital Partners (Pvt.) Ltd, was incorporated in 2013 and acted as the holding company for four wholly-owned operational entities: SecurLog (Pvt.) Ltd; SecureTrack (Pvt.) Ltd; Fist Security (Pvt.) Ltd; and TDM (Pvt.) Ltd. The operational entities were involved in logistics, vehicle fleet management, security services and commodity trading/indenting businesses, respectively.
As per the company’s prospectus, out of the total issue size, 38,280,066 (comprising 18.70% of the total post-IPO paid-up capital of SLG) ordinary shares are being issued by SLG as a new issue and the remaining 17,275,490 (comprising 8.44% of the total post-IPO paid-up capital of SLG) are being offered by sponsors of SLG.
Successful bidders shall be provisionally allotted 75% of the issue size i.e. 18,750,000 shares and the remaining shall be offered to retail investors through the general public portion.
“The planned usage of IPO proceeds will assist SLG to evolve into a Third Party Logistic (“3PL”) player with the capacity to provide a full range of factory to wholesaler logistic services.
“The equity funds to be raised shall be dedicated to an addition of operating assets, efficiencies/enhancement initiatives and initiation of new business segments,” read the prospectus.
As a result of the proposed expansion, SLG’s fleet size could increase from 158 to 160 trucks in long-haul, from 62 to 135 vehicles in distribution, from 15 to 25 vehicles in Cash-in-Transit (CIT) along with 40 containers and 2 warehouses to be added to the non-current assets of the business.
Apart from this, investments will be made to the B2B marketplace platform and up gradation of IT infrastructure.
Highest IPOs on PSX in 2021 after six years: Rs20bn raised by firms
Pakistan's stock market, the PSX, saw record offerings in 2021 where the bourse witnessed eight IPOs, including 2 GEM board offerings, the highest after 2015. Total amount raised from investors from these eight offerings clocked in at Rs20 billion during 2021.