Author Topic: FATIMA -- Fatima Fertilizer Company Limited  (Read 197444 times)

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FATIMA -- Fatima Fertilizer Company Limited
« Reply #-1 on: January 04, 2010, 06:20:26 PM »
FATIMA FERTILIZER COMPANY LIMITED

PRELIMINARY PROSPECTUS
For Issue of 200 million ordinary shares (10% of the total paid up capital) at par value of
PKR 10/- share (the Floor Price) through the BOOK BUILDING PROCESS
Book Building portion of the Issue comprises of 150,000,000 shares (75% of the total Issue)
General Public portion of the Issue comprises of 50,000,000 shares (25% of the total Issue)

BIDDING PERIOD DATES: From 11 January, 2010 to 13 January, 2010
(BOTH DAYS INCLUSIVE)

DATE OF PUBLIC SUBSCRIPTION: From 27 January, 2010 to 28 January, 2010
(BOTH DAYS INCLUSIVE) DURING BANKING HOURS

http://www.arifhabibltd.com/
« Last Edit: January 29, 2012, 04:48:32 PM by M&M »

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FATIMA -- Fatima Fertilizer Company Limited
« Reply #-1 on: January 04, 2010, 06:20:26 PM »

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Re: FATIMA -- Fatima Fertilizer Company Limited
« on: January 04, 2010, 06:27:55 PM »
5.2 THE SPONSORS

5.2.1 The Fatima Group

The Fatima Group (FG) is one of the leading corporate groups in Pakistan. FG comprises of
Pakarab Fertilizers Limited, Fatima Fertilizer Company Limited, Fatima Sugar Mills Limited,
Reliance Weaving Mills Limited, Fazal Cloth Mills Limited, Reliance Commodities (Pvt.)
Limited and Fatima Energy Limited.

The individuals at the helm of affairs of FG are very well versed in all phases of running a
business that is setting-up, operating and managing large industrial units and also enjoys
good business relations with different trading houses all over the world. These factors have
contributed significantly towards the progress of FG and the turnover has increased sharply
over the years and has also acquired a sound segment of the international trade.
FG has over the years acquired the experience of managing businesses in different sectors
including Fertilizer, Textile, Sugar, and Foreign Trade. The Sponsors have been engaged in
various industrial and trading businesses since 1936 and over the years, the market
reputation, financial standing, and strength of the Group has grown.

5.2.2 The Arif Habib Group

The Arif Habib Group ranks amongst the fastest growing blue-chip conglomerates in
Pakistan. It has an enviable brand franchise built on stakeholder trust, better returns for the
public shareholder and its orientation towards continuous investment in staff, systems and
service capacity. Good corporate governance and insistence on the voluntary adoption of
global best practices are two additional themes that set the Group apart from its
competitors. The Group operates through its holding company – Arif Habib Securities
Limited (AHSL). AHSL is amongst the top performing companies listed at the Karachi Stock
Exchange. On account of its good corporate performance, AHSL has won the prestigious Top
Companies Award in each year since its listing at the KSE.

The Group has, over the years, built up a strong capacity to identify and develop successful
business ventures, implementing turnarounds, and generating super-normal returns in
variety of market conditions. Its joint ventures with reputed business groups—both Pakistani
and multi-national—are testaments of the Group’s ability to identify opportunities,
assemble strong consortia, and create value for stakeholders.

Many of the private equity investments made by the Group have involved participation in
privatization of state owned enterprises. The financial and management strength of the
Group enables it to qualify, on a stand-alone basis, as eligible bidder for big ticket
privatizations. The Group has successfully acquired large fertilizer and cement plants
through privatizations. Group entities operating across the entire spectrum of the Pakistan
financial services industry provide unparalleled expertise and synergies that help ensure
success of the sponsored ventures. The Group holds controlling or substantial interests in
successful companies competing across the securities brokerage, investment and financial
advisory, investment management, commercial banking, commodities, private equity,
cement, real estate, steel, and fertilizer industries.

The Group Chairman, Mr. Arif Habib has served as the President / Chairman of the Karachi
Stock Exchange six times in the past, and has been instrumental in introducing a number of
reforms including introduction of Central Depository System, computerized trading and risk
management system. He is the Founding Member and Former Chairman of the Central
Depository Company of Pakistan Limited. He has served as Member of the Privatization
Commission, Board of Investment, Tariff Reforms Commission and Securities & Exchange
Ordinance Review Committee.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #1 on: January 04, 2010, 06:36:44 PM »
5.3 THE PROJECT

Fatima Fertilizer Company Limited is a fully integrated fertilizer complex of Nitro Phosphate
(NP), Nitrogen Potassium Phosphate (NPK), Calcium Ammonium Nitrate (CAN) and Urea
plants with off sites and utilities. The Project envisages achieving an optimal balance
between the production of NP, NPK, CAN and Urea, while aiming to fully exploit the
synergies in marketing the four products. Fatima Fertilizer has signed a Gas Sale and
Purchase Agreement (“GSPA”) with Mari Gas Company Limited, which was finally approved
by Oil and Gas Regulatory Authority (“OGRA”). The tenor of GSPA is of ten years from the
date of commissioning extendable for other periods as mutually agreed.
The price will be determined as per the provisions of the Fertilizer Policy 2001. For feed
stock, the price is fixed at US cents 70 per MMBTU whereas the pricing for fuel gas will be
the same as for other industrial consumers in the country. The total installed capacity of the
project is 1.58 million tones. The required gas of 110 MMCFD has been allocated by
Government of Pakistan from Mari Gas fields.

Total cost of the Project is US$ 701 million (Capital cost of per tons capacity of the Project
comes to US$ 443) equivalent to Pak Rupees 59.24 billion, which has been financed through
debt of PKR 33.00 billion and equity /subordinated loans of PKR 26.24 billion. The Sponsors
have fully subscribed the ordinary share of PKR 18.00 billion and paid Rs. 4.00 billion to the
Company as shares subscription money against the issuance of cumulative
redeemable/convertible Preference Shares as of November 2009.

5.4 PROJECT LOCATION

The plant is located at Mukhtar Garh, Sadiqabad, Rahim Yar Khan, Punjab, Pakistan on an
area of 948 Acres of freehold land.

5.5 PLANT CAPACITY

Annual design capacity (Mt.) Mechanical Completion Expected Commercial Production

Ammonia 500,000 Oct-2009 Dec-2009
Nitric Acid 500,000  Oct-2009 Jan-2010
Urea 500,000 Oct-2009 Jan-2010
NP 360,000 Oct-2010 Jan-2011
CAN 420,000 Oct-2009 Nov-2009
NPK 300,000 Oct-2010 Jan-2011


Offline Karuli

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #2 on: January 04, 2010, 06:40:11 PM »
5.3 THE PROJECT

Fatima Fertilizer Company Limited is a fully integrated fertilizer complex of Nitro Phosphate
(NP), Nitrogen Potassium Phosphate (NPK), Calcium Ammonium Nitrate (CAN) and Urea
plants with off sites and utilities. The Project envisages achieving an optimal balance
between the production of NP, NPK, CAN and Urea, while aiming to fully exploit the
synergies in marketing the four products. Fatima Fertilizer has signed a Gas Sale and
Purchase Agreement (“GSPA”) with Mari Gas Company Limited, which was finally approved
by Oil and Gas Regulatory Authority (“OGRA”). The tenor of GSPA is of ten years from the
date of commissioning extendable for other periods as mutually agreed.
The price will be determined as per the provisions of the Fertilizer Policy 2001. For feed
stock, the price is fixed at US cents 70 per MMBTU whereas the pricing for fuel gas will be
the same as for other industrial consumers in the country. The total installed capacity of the
project is 1.58 million tones. The required gas of 110 MMCFD has been allocated by
Government of Pakistan from Mari Gas fields.

Total cost of the Project is US$ 701 million (Capital cost of per tons capacity of the Project
comes to US$ 443) equivalent to Pak Rupees 59.24 billion, which has been financed through
debt of PKR 33.00 billion and equity /subordinated loans of PKR 26.24 billion. The Sponsors
have fully subscribed the ordinary share of PKR 18.00 billion and paid Rs. 4.00 billion to the
Company as shares subscription money against the issuance of cumulative
redeemable/convertible Preference Shares as of November 2009.

5.4 PROJECT LOCATION

The plant is located at Mukhtar Garh, Sadiqabad, Rahim Yar Khan, Punjab, Pakistan on an
area of 948 Acres of freehold land.

5.5 PLANT CAPACITY

Annual design capacity (Mt.) Mechanical Completion Expected Commercial Production

Ammonia 500,000 Oct-2009 Dec-2009
Nitric Acid 500,000  Oct-2009 Jan-2010
Urea 500,000 Oct-2009 Jan-2010
NP 360,000 Oct-2010 Jan-2011
CAN 420,000 Oct-2009 Nov-2009
NPK 300,000 Oct-2010 Jan-2011


Excellent, Farzooq Bhai

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #3 on: January 04, 2010, 06:41:08 PM »
5.12 PROJECT IMPLEMENTATION SCHEDULE

Acquisition of land Acquired
Civil work 97% completed except NP and NPK plants
Completion of arrival of machinery All plants 100% arrived at site except NP plant.
Completion of erection/installation
of machinery
All plants are 99% complete except NP and NPK plants
Plant Commissioning

 
The CAN plant has already been commissioned and has
started its production. The Project will achieve
commissioning of the Ammonia Plant by end of 2009
and of the Urea plant by January 2010;
 
Significant plants of O&U including power plant, Steam
Generators, Nitrogen System, Natural Gas and water
facilities have already commissioned;

The NP plant will be commissioned by fourth quarter of
2010 and subsequently the NPK plant will be
commissioned.
 
The Mechanical Completion dates and expected
Commercial production dates have been described in
Para 5.5 above.

5.13 CURRENT STATUS

The Project except for the NP and NPK Plants is currently about 99% complete and pre
commissioning and commissioning activities are progressing well as per schedule.
Milestones like setting up and installation of the Fire water system, Natural Gas pipeline, raw
water system and Power plant has been successfully completed and now water, gas and
power is available at site. Different plants are at various stages of completion and about PKR
48 billion has already been invested in the Project. The Project has achieved significant
progress and will achieve commissioning of the Ammonia, Urea CAN 2009. Significant plants
of O&U have already commissioned. The NP plant will be commissioned by fourth quarter of
2010 and subsequently the NPK plant will be commissioned.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #4 on: January 04, 2010, 06:54:03 PM »
Assests 44.5 billion
capital 20 billion
debt 24.5 billion

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #5 on: January 04, 2010, 06:55:14 PM »
book value 9.8 rs

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #6 on: January 04, 2010, 10:56:44 PM »
yeh tou accha naahin lagta

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #7 on: January 05, 2010, 11:29:56 AM »
Fertilizer: FATIMA FERTILIZER – Balanced Player

   Fatima Fertilizer Limited is expected to undergo Book-Building process from January 11- January 13, 2010 and IPO from January 27 – January 28, 2010

   Total installed capacity will be 1.58mtpa: urea 500Ktpa, CAN 420Ktpa, NP 360Ktpa and NPK 300Ktpa

   Company provided valuation reflects a DCF value of PKR20.17/share while Blended relative valuations provide an average value of equity at PKR22.64/share

   We advise our clients to subscribe for equity given the underlying floor rate of PKR10/share for both Book-Building and IPO
 

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #8 on: January 07, 2010, 12:13:13 PM »
New entrants in the urea space…and at the KSE

2010E should see two new urea plants and one de-bottlenecking come online, starting with 0.5mn
tpa Fatima Fertilizer (FFCL) in 1Q10 to be followed by 0.125mn tons Pak American Fertilizer
(PAFL) de-bottlenecking in 1H10 and Engro's 1.3mn ton new urea plant in 3Q10. FFCL’s IPO is
due next week, where the company is due to offer 200mn shares (10% of paid up) at a minimum
price of PRs10/sh via a book-building process. With min expected mcap of US$238mn for FFCL
(Free Float mcap of US$24mn) we highlight a broadening investable universe for Pak fertilizers.

Note also that PAFL also targets to go public in 2010E.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #9 on: January 07, 2010, 12:49:15 PM »
Fatima Fertilizer - Raising Capital through Public Offering

Fatima Fertilizer is offering 200mn shares to the public through a process of booking building and IPO. The company has decided to offer 150mn shares through the book building - Dutch Auction Method scheduled for Jan11-13'10. The minimum bid size for the auction is PKR 1mn. The remaining 50mn shares will be offered to the retail investors through an IPO scheduled for Jan27-28'10 at a strike price determined in the book building process.

Outlook

According to management estimates, post commencement of the NP plant, the gross margins are expected to come in at 54% and net margins at 19% in CY11. At a share price of PKR 10, the company is priced at a significant discount compared to its peers at a PE multiple of 4.9x. The company's financial advisors have used the DCF valuation methodology with a WACC of 12.8% and terminal growth rate of 3% to arrive at the fair price of the stock of at PKR 20.17 per share. This is at a discount of 50% to its available price of PKR 10 per share.

IGI Research

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #10 on: January 07, 2010, 12:53:49 PM »
Fatima Fertilizer - Raising Capital through Public Offering

Fatima Fertilizer is offering 200mn shares to the public through a process of booking building and IPO. The company has decided to offer 150mn shares through the book building - Dutch Auction Method scheduled for Jan11-13'10. The minimum bid size for the auction is PKR 1mn. The remaining 50mn shares will be offered to the retail investors through an IPO scheduled for Jan27-28'10 at a strike price determined in the book building process.

Outlook

According to management estimates, post commencement of the NP plant, the gross margins are expected to come in at 54% and net margins at 19% in CY11. At a share price of PKR 10, the company is priced at a significant discount compared to its peers at a PE multiple of 4.9x. The company's financial advisors have used the DCF valuation methodology with a WACC of 12.8% and terminal growth rate of 3% to arrive at the fair price of the stock of at PKR 20.17 per share. This is at a discount of 50% to its available price of PKR 10 per share.

IGI Research



Its too technical for me can you please write in simple english.
Thanks .
Mistakes are painful when they happen. But year's later collection of mistake is called experience which leads to success.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #11 on: January 07, 2010, 12:57:09 PM »
in simple english it means its attractive at rs 10
and one should go for it

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #12 on: January 07, 2010, 01:11:36 PM »
in simple english it means its attractive at rs 10
and one should go for it

When it will be introduce in KSE (DATE). Like few days back GGL got introduce in it.
Mistakes are painful when they happen. But year's later collection of mistake is called experience which leads to success.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #13 on: January 07, 2010, 01:12:57 PM »
in simple english it means its attractive at rs 10
and one should go for it

When it will be introduce in KSE (DATE). Like few days back GGL got introduce in it.

that will take almost 2 months

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #14 on: January 07, 2010, 05:41:40 PM »
Subscribe in ipo
Stock trading is a science and art too

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #15 on: January 07, 2010, 06:28:16 PM »
Subscribe in ipo

how to do that? I have no idea about this
Mistakes are painful when they happen. But year's later collection of mistake is called experience which leads to success.

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #16 on: January 07, 2010, 07:20:06 PM »
Subscribe in ipo

how to do that? I have no idea about this

DATE OF PUBLIC SUBSCRIPTION: From 27 January, 2010 to 28 January, 2010
(BOTH DAYS INCLUSIVE) DURING BANKING HOURS

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #17 on: January 07, 2010, 07:27:51 PM »
Subscribe in ipo

how to do that? I have no idea about this
get subs form from ur banker detailed instruction will b on forms mentioning how to apply
Stock trading is a science and art too

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Re: FATIMA -- Fatima Fertilizer Company Limited
« Reply #18 on: January 08, 2010, 11:00:17 AM »
Biggest IPO in two years next week
 
 
 
Friday, January 08, 2010
By our correspondent

KARACHI: Fatima Fertilizer’s initial public offer (IPO) is being termed the largest public offering in the last two years.

The company is offering its 10 per cent or 200 million shares worth Rs2 billion through book building and traditional method from Jan 11-13, 2010.

With Pakistan stocks opening on a positive note in the new year posting four per cent gain in three trading sessions, Fatima Fertilizer IPO would be another positive development, said Farhan Mahmood at Topline Securities.

Based on the base price, this offering of Rs2 billion would be the largest offering after a gap of two years, he continued, Fauji Fertilizer Bin Qasim got an overwhelming response with over subscription of 2.3 times in 1996. Moreover, the size of the offer is decent compared to average size offering of Rs840 million done in last decade in Pakistan.

After a gap of 13 years, Fatima Fertilizer is the first fertiliser maker coming to the market. The Rs2 billion (200 million shares) offer includes Rs1.5 billion (150 million shares) through book building and the rest through general pubic, he explained.

“This may to some extent overcome the issue of depth of Pakistan market whose size in terms of capitalization and volume has fallen substantially after the imposition of price floor rule in August-2008,” Mahmood opined.

Looking at the positive market trend and investors’ experience of recently listed Ghani Gases, the issue was likely to get a positive response especially in the book building, he said adding, based on different valuation model, expectation are that institutions and High Net Worth Individuals (HNWI) will bid between Rs12-13.

The total production capacity of this fertiliser complex is 1.58 million tons including 0.5 million tons urea capacity. According to the company, urea production would start by the end of this month. Following the commissioning of urea plant, Fatima Fertiliser would be the fourth largest urea manufacturing plant in the country. This plant would manufacture different types of fertilisers excluding DAP. This could create some urea supply overhang for two years, he believes.

The total estimated cost of the project is Rs59.2 billion which is financed through Rs24.2 billion sponsors equity, Rs2bn general public and Rs33 billion through debt. Looking at the shareholding pattern, unlisted Pakarab Fertilisers is the major shareholder in the company with 50 per cent stake, while amongst the listed companies, Arif Habib Securities holds 10 per cent (180 million shares), followed by Fazal Cloth Mills (1.9 per cent) and Reliance Weaving (0.1 per cent).