The book building of the Hi-Tech Lubricants Limited has been over-subscribed by 2.24 times after the two-day book building process. The shares were offered at a base price of Rs 37 per share but following significantly high demand during the book building process, the closing strike price of the share stayed at Rs 62.50.
The book-building process was only available for bidding from the corporate entities and high net worth individuals (HNWI). As a result of the steep demand of the company's share, the company was able to raise Rs 1.35 billion from the book building process in which 75 percent or 21.75 million out of the company's offered shares of 29 million were made available for bidding in the market.
In the next stage of the IPO (initial public offer), the remaining 25 percent or 7.25 million shares shall be offered to the general public at the same strike price of Rs 62.50. In this way, the company shall be able to further raise a sum of Rs 453 million, thereby bringing the total proceeds of Rs 1.8 billion.
Commenting on the overwhelming response of the investors, the Company's Director Shaukat Hassan said that the board and the management of the company are quite thankful to the investors for posing their confidence in the future of our company. The company is also extremely happy to become the first ever listed company after the formation of Pakistan Stock Exchange (PSX)" he said.
It is claimed that Hi-Tech Lubricants enjoys 13.6 percent market share in passenger car motor oil segment and an overall 5.5 percent share of the total machine lubricant market in Pakistan. HTLL's solid market positioning and a widespread distribution network of 150+ distributors across Pakistan. Hi-Tech's product portfolio, under the brand name of "ZIC", includes a wide range of specialty lubricants in automotive, industrial and marine segments, which are imported from SK Lubricants Ltd, South Korea, ensuring highest quality and maximum protection against engine and machine wear.