Select Technologies IPO oversubscribed 1.73 times

The initial public offering (IPO) of Select Technologies Limited was oversubscribed by around 1.73 times, with investors applying for 38.43 million ordinary shares against an issue size of 22.22 million shares, according to tentative subscription figures submitted to the Pakistan Stock Exchange (PSX).

In a notice to the PSX on Tuesday, Arif Habib Limited said the public subscription, held on July 2 and 3, attracted applications for 38,433,500 shares against the offered 22,222,222 shares. The figures were compiled by CDC Share Registrar Services Limited using data from PSX and CDC e-IPO platforms.

The IPO received 12,186 applications, with investors subscribing to shares worth Rs 1.307 billion.

Applications for 500 shares accounted for 3,391 applications, covering 1,695,500 shares worth Rs57.65 million. Investors submitted 3,350 applications for 1,000 shares, amounting to 3.35 million shares worth Rs113.9 million. Another 912 applications were received for 1,500 shares, representing 1.368 million shares valued at Rs46.51 million.

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The 2,000-share category attracted 3,319 applications for 6.638 million shares, with subscriptions worth Rs225.69 million. The greatest demand came from applications above 2,000 shares, where 1,214 investors applied for 25.382 million shares worth Rs 862.99 million.

According to the subscription summary, all applications for up to 2,000 shares will receive full allotment, while applications exceeding 2,000 shares will be allotted on a pro-rata basis.

The subscription figures remain tentative and are based on applications received through the PSX and CDC e-IPO systems, as compiled by CDC Share Registrar Services Limited.

Earlier, Select Technologies’ IPO book-building process was oversubscribed by 3.2 times, with the issue fully subscribed at Rs34 per share, above the floor price of Rs28 per share. The company offered 66.67 million ordinary shares through the book-building process.

Select Technologies Limited is a wholly owned subsidiary of Air Link Communication Limited. The company manufactures and assembles smartphones, smart TVs, air conditioners and other consumer appliances in Pakistan.

The company plans to expand into higher-margin consumer technology and home appliance segments.