Islamabad-based Secure Logistics Group Limited will launch its initial public offering (IPO) next week to raise Rs. 600 million ($2.1 million) from public investors.
This will be the first logistics IPO on the main bourse. SLG will offer 50 million shares at a floor price of Rs. 12 each through a book-building process on March 27 and 28.
The proceeds from the IPO will be utilized to reduce debt and expand the logistics business, particularly to leverage opportunities arising from the China-Pakistan Economic Corridor (CPEC). Saudi Bugshan Group, a strategic investor in SLG, will see its share increase from 13.6 percent to 17 percent post-IPO. The management anticipates significant growth in road transportation under the CPEC in the coming years.
SLG has already raised Rs. 585 million ($2 million) from Saudi Bugshan Group and Karandaaz Pakistan. The public offering gives access to a discounted book value of the company.
Secure Logistics has a total of 283 transport vehicles and its revenue is expected to climb higher by 28 percent in 2024.
It bears mentioning that Pakistan’s IPO space almost came to a standstill last year when investors bowed out of investing in Pakistan amid fears of default. According to Bloomberg data, only one business went public and raised approximately $1.6 million last year.
