Fast Cables Limited plans to go public by selling a quarter of its post-listing interest for at least Rs. 3 billion, according to the company’s draft prospectus shared with the Pakistan Stock Exchange.
Through 100 percent book building, the Lahore-based cable manufacturer will issue 83.5 million shares, or 25 percent of its entire post-IPO shareholding, at a floor price of Rs. 36 per share.
Bids from institutional investors and high-net-worth individuals are projected to reach Rs. 50.40, or 40 percent over the floor price. In this context, the IPO proceeds can vary from Rs. 3 billion to Rs. 4.2 billion, depending on the extent of investor interest during book-building.
The bidders in Book Building shall place Bids for 100 percent of the Issue size and the Strike Price shall be the price at which the 100 percent of the issue is subscribed. However, the successful Bidders shall be provisionally allotted only 75 percent of the Issue size i.e., 62,625,000 shares, and the remaining 25 percent i.e., 20,875,000 shares shall be offered to the retail Investors through the General Public portion.
Unsubscribed shares, if any, of the General Subscription portion will be allocated to Successful Bidders of the Book Building portion on a pro-rata basis.
The proceeds from the IPO will be utilized in several key areas, including the acquisition of new land, the construction of a state-of-the-art building, the installation of new plant and machinery, and the repayment of debt associated with the machinery and building components. The excess amount raised above the floor price will be utilized in working capital requirements.
The total amount raised from the IPO of Rs. 3,006,000,000 will be used to finance the procurement of land, construction of buildings, and installation of new plants and machinery to enhance the production capacity of the current product lines and repayment of debt.
Any excessive funds raised, in case the Strike Price is determined above the Floor Price, would be utilized to fund the internal working capital requirement of Fast Cables.
PSX has posted the company’s draft prospectus on its website to solicit public feedback on the IPO by August 17.
Fast Cables’ net profit in 2021-22 was Rs. 1.04 billion, up by 95 percent from Rs. 532.7 million the previous year. Meanwhile, sales of the company surged by 61.6 percent to Rs. 22.9 billion from Rs. 14.2 billion during the period in review.
Fast Cables is a preeminent local manufacturer of top-quality electrical cables and conductors in Pakistan. The Company’s emphasis on quality has made Fast Cables one of the most reliable brands in the cable industry of Pakistan and the choice of leading electrical consultants, engineers, and architects. The company’s annual production capacity as of 31st December 2022 of copper products stands at 8,400 metric tons while for aluminum products 13,800 metric tons.
Fast Cables has two manufacturing plants in Lahore which are equipped with state-of-the-art technology along with excellent quality assurance systems. Unit – I is located at 7-Canal Bank Main Jallo Road, Harbans Pura, Lahore whereas Unit – II is located at Bahi Kot, Dars Road, Tehsil-Raiwind, District Lahore.
Source: Pro Pakistani
