SSGC’s LPG subsidiary to launch IPO of 33.3 million shares

Board approves conversion of SLL status and initiation of the process to issue 33,333,333 ordinary shares by IPO at any time in the future

Sui Southern Gas Company Limited (SSGC), a state-owned gas utility company, has announced its plans to convert its subsidiary SSGC LPG (Private) Limited (SLL) into a public limited company and issue 33.3 million shares through an initial public offering (IPO).

The board of directors of SSGC has approved the conversion of the status of SLL and the initiation of the process for the issuance of 33,333,333 ordinary shares by IPO at any time in the future, as deemed appropriate, according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.

The board also authorised the management of the company to undertake all requisite steps for future listing at the PSX by the board of SLL.

SLL is a 100% owned subsidiary of SSGC, engaged in liquefied petroleum gas (LPG) marketing and distribution across the country.

The company owns and operates a dedicated open-access LPG terminal with storage facilities at Port Qasim to handle LPG imports. SLL is also a fully integrated LPG company capable of providing end-to-end solutions right from the terminal at Port Qasim to the supply of consumer retail packs of LPG.

The IPO of SLL is expected to attract investors’ interest as the company has a strong market position and growth potential in the LPG sector. The company reported a net profit of Rs 1.2 billion for the year ended June 30, 2023, up by 28% from the previous year. The company also declared a dividend of Rs 2.5 per share for its shareholders.

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