Pak Agro Packaging Limited – is planning an initial public offering (IPO) on Pakistan Stock Exchange (PSX) next week, reported Bloomberg. It will make it the first to list on a new bourse for small businesses in Pakistan.
Incorporated in Islamabad, Pak Agro Packaging Ltd. will sell 8 million new shares equal to 40 percent of the company, on the Pakistan Stock Exchange’s Growth Enterprise Market Board, said the head of investment at AKD Securities Ltd, Syed Khurram Shahid.
He added that the target per-share price range is set at Rs. 22.5—31.5, which will be concluded through the book-building process scheduled for next week.
The domestic IPO fever is gaining traction amid rich valuations of quality stocks such as Octopus Digital and Air Link Communications, and the listing of Pak Agro Packaging Limited on PSX will add more heat to the liquidity game.
While it is arguable that the Pakistani market is expensive and tends to confuse avid investors, it is still trading at a significant premium to its emerging-market peers. Besides the imminent book-building process of Pak Agro Packaging Limited, it is worth mentioning that four other companies are currently at an advanced stage to list on the Growth Enterprise Market (GEM) board, according to CEO PSX, Farrukh Khan.
Pak Agro Packaging Limited is Pakistan’s pioneer and premier company engaged in manufacturing agricultural textile products specifically for use by the hardworking farmers of the country. Starting with only two products in 2001, Pak Agro Packaging Limited now manufactures a wide range of products such as nets, bags, and awnings. The company is a market leader in its target market and operates through a network of distributors without offering any credit facilities.
Due to satisfactory cash flows, a large portion of the company’s investment in its assets has been primarily funded by internally generated funds, and for the purpose of expanding its operations, the company wishes to get listed on the GEM board of PSX.