Islamabad-based Secure Logistics Group Ltd (SLG) has announced its intention to conduct an initial public offering (IPO) on the Pakistan Stock Exchange (PSX) to raise a minimum of Rs600 million ($2.16 million).
The IPO is scheduled for March 27th and 28th, as disclosed by Arif Habib Limited (AHL), the exclusive financial adviser and bookrunner for the transaction.
SLG specializes in providing logistics and vehicle fleet management services throughout Pakistan.
The company has set a floor price of Rs12 per share, intending to offer 50 million shares to potential investors.
Prior to the IPO, SLG secured pre-IPO equity investments totaling Rs585 million, with contributions of Rs248 million from Saudi Bugshan and Rs237 million from Karandaaz Pakistan, both of which are strategic investors in the company.
The funds raised from the IPO are earmarked for several key objectives, including deleveraging the company’s balance sheet amid a high-interest-rate environment, enhancing its technology infrastructure for the completion of an ongoing Tech-Pivot, and facilitating expansion into regional markets.
SLG has a history of successful capital raises, including a Rs600 million convertible Term Finance Issue in the first quarter of 2019 used for fleet expansion, and a Rs1.2 billion equity issue in the first quarter of 2020 aimed at business operations expansion and partial debt repayment.
For the calendar year 2023, the company reported an earnings per share (EPS) of Rs2.28, resulting in a price-to-earnings (P/E) ratio of 5.39x at the floor price.
In 2022, SLG had previously indicated a plan to raise Rs1.5 billion through an IPO to fund operational expansion but did not proceed with the IPO at that time.
It is a fraud company. Heavy losses and liquidity issues. Do not invest!
There is serious numbers frauds in Financial Books, don.t INVEST Please BE-AWARE!!!
Company is near to dissolve due to losses, that’s why goes to IPO