KARACHI: Secure Logistics Group Limited IPO’s book building phase will be held on 27th and 28th March 2024, where high net worth individuals and institutional investors will subscribe to 100 per cent of the issue size (50 million shares).

The book building will start at the floor price of Rs 12 per share. Based on the interest from investors during the book building process, the strike price can rise by 40 per cent to up to Rs 16.80 a share, thus helping the company to potentially raise Rs 840 million.

After the book building process, successful bidders will be provisionally allotted 75 per cent of the issue size (50 million shares). The remaining 25 per cent shares will then be offered to retail investors at the strike price. SLG aims to raise a minimum of Rs 600 million by offering a 18 percent stake in the company to institutional and general investors.

SLG has also already secured pre-IPO equity of Rs585 million from existing strategic investors like Saudi Bugshan Group (a large Saudi conglomerate) and Karandaaz Pakistan, a FDCO backed development finance institution.

The primary purpose of the equity capital raising is to “de-leverage the balance sheet in an unprecedented high interest rate environment, enhance company’s technology infrastructure base to complete the on-going Tech-Pivot and initiate expansion into the regional markets”.

The company has a solid track record of capital market transactions to boost business growth. It successfully closed ‘Rs 600 million convertible Term Finance Issue’ in the first quarter of CY19 and raised another Rs 1.2 billion through equity issue to Saudi Bugshan Group and Karandaaz Pakistan in the first quarter of CY20. SLG’s IPO has been priced at an attractive trailing P/E of 5.39x at the floor price of Rs 12.00.

Copyright Business Recorder, 2024