Secure Logistics Group to Raise Rs. 1.5 Billion With IPO at PSX

Secure Logistics Group Limited (SLG) has applied to be listed on the Pakistan Stock Exchange (PSX) to raise equity of Rs. 1.5 billion for an expansion of its businesses in its operating sector.

The company will issue 55,555,556 Ordinary Shares (constituting a New Issue of 38,280,066 ordinary shares and an offer for the sale of 17,275,490 ordinary shares) using the 100 percent Book Building Method at a Floor Price of PKR 27 per share.

The IPO proceeds will primarily be used for a comprehensive expansion plan focused on the logistic business. A portion of the funds raised through the IPO will also be utilized for the partial de-leveraging of the Balance Sheet.

The planned usage of IPO proceeds will facilitate the evolution of SLG into a Third Party Logistics (3PL) player with the capacity to provide a full range of factories to wholesaler logistic services. The equity funds to be raised will be dedicated to the addition of operating assets, efficiencies/enhancement initiatives, and the initiation of new business segments.

For the aforesaid issue, Arif Habib Limited is the lead manager and book-runner while Habib Bank Limited is the banker to the book building portion of the Issue.

The proposed expansion will allow the company’s fleet size to increase from 158 trucks to 160 trucks in Long-haul, 62 vehicles to 135 vehicles in Distribution, 15 vehicles to 25 vehicles in CIT, along with 40 containers and two warehouses to be added to the non-current assets of the business. Apart from this, investments will be made in the B2B marketplace platform and the up-gradation of IT infrastructure.

Secure Logistics Group

The company is primarily involved in the logistics business, including long-haul and distribution (short-to-medium haul) segments covering the transportation of goods across the country. The existing long-haul segment includes bulk (coal, cement, fertilizer, etc.) and containerized cargos (food, appliances, textile, packaging material, etc.). The distribution segment covers containerized cargos (food, industrial products, appliances, packaging material, etc.) and beverages.

The group is also involved in Assets Tracking services, which include advanced fleet management, container tracking, fuel management solutions, and cold chain management. SLG is also in the business of providing security services through its wholly-owned subsidiary company that provides fixed guarding, close protection, cash-in-transit, and supplies electronic and mechanical security equipment.

Previously called Asia Capital Partners (Pvt.) Ltd. until 2016, Secure Logistics Group Limited was incorporated in 2013 and acted as the holding company for four wholly-owned operational entities:

  1. SecurLog (Pvt.) Ltd.
  2. SecureTrack (Pvt.) Ltd.
  3. Fist Security (Pvt.) Ltd. (‘FIST’ or the ‘Subsidiary’)
  4. TDM (Pvt.) Ltd.

The operational entities were involved in logistics, vehicle fleet management, security services, and commodity trading/indenting businesses, respectively.

Initially, 75 percent of the issue size or 41,666,667 Ordinary Shares will be allotted to Successful Bidders and 25 percent of the Issue or 13,888,889 Ordinary Shares will be offered to Retail Investors at the Strike Price. Any unsubscribed retail portion will be allocated to Successful Bidders on a pro-rata basis.



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