Ready mix concrete products company offers Rs 125 million IPO
KARACHI (February 03 2010): Safe Mix Concrete Products Limited (SMCPL) has announced offering of its 10 million ordinary shares to general public at an offer price of Rs 12.50 per share, including a premium of Rs 2.50 per share. The SMCPL is the first and the largest ready mix concrete (RMC) producer in Pakistan with the capacity of 346 cubic metres per hour.
The plants of the company are strategically located in Karachi and Lahore, making it the only RMC company, with existence in both northern and southern regions. The company has undertaken numerous large-scale projects in Karachi and Lahore and enjoys a diversified clientele.
The issue of 10 million ordinary shares, amounting to Rs 125 million, is 50 percent of the total paid up capital of SMCPL. The subscription list will open at the commencement of banking hours on February 12, 2010 and will close on February 13, 2010 at the close of banking hours.
Arif Habib Limited has been mandated to act as Financial Advisor and Arranger for the proposed Initial Public Offering (IPO) of SMCPL. The Lead Underwriter is National Bank of Pakistan (NBP), while other underwriters include Allied Bank, Saudi Pak Industrial & Agricultural Investment Company, Elixir Securities (Pvt) Pakistan, Invisor Securities (Pvt) Limited, and Cassim Investments (Pvt) Limited.
The sponsors include Arif Habib, Chairman, Arif Habib Group; Sir Anwar Perveiz, Chairman Bestway Group; Bashir H. Ali Muhammad, Chairman, Gul Ahmed Textile; Syed Yawar Ali, Chairman, Nestle Pakistan, and Asim Tiwana, CEO, Kaizan Construction (Private).
The objectives of the IPO are to raise additional capital of Rs 125 million to purchase transit mixers and pumps, which the company has rented currently; to reduce rental payments, which currently stand at Rs 51 million, constituting 8 percent of the manufacturing cost and to improve profitability and margin of the company that are haunted by higher finance and rental cost.
The bankers to the Issue are Arif Habib Bank, Bank Al-Habib, Habib Bank, J.S. Bank, Bank of Punjab, Bank Alfalah, Faysal Bank, Habib Metropolitan, MCB Bank and United Bank. The company has arranged a presentation at the auditorium of Karachi Stock Exchange (KSE) on Wednesday (today). The members of the exchange would be given detailed briefing about the company and its IPO.