Karachi June 23 2021: Pakistan Aluminium Beverage Cans Limited (PABC) Initial Public Offering Oversubscribed by 2.5 times as it receives bides of 233.2 million shares against the offer of 93.888 million shares.
The strike price came out to be PKR49 per share, which is 40 percent higher than the floor price of PKR35 per share
A L S O || R E A D
Citi Pharma IPO oversubscribed by 1.75 times at Strike Price of PKR32
This Offer consists of 93,888,000 Ordinary Shares which is 26 percent of the paid up capital of Pakistan Aluminium Beverage Cans Limited of face value of PKR 10 per share each offered by Ashmore Mauritius PABC Limited as an Offer for Sale. This helps Ashmore Mauritius PABC Limited to raise an amount of PKR4.6 billion.
Currently Ashmore Holds 51 percent of the company which it plans to divest. Ashmore Mauritius PABC Limited is divesting 26 percent of the paid up capital of the Company through this Offer For Sale (OFS) and rest through private placement, for which it has entered into agreements to sell 18 million shares i.e. approximately 5 percent of the paid up capital of Company at a price of PKR30.80 per share to Liberty Group and 72 million shares i.e. approximately 20 percent of the paid up capital of Company at a price of PKR 31.85 to Soorty Enterprises (Private) Limited.
Ashmore Mauritius PABC Limited was incorporated as a public limited company in Mauritius by Ashmore Investment Management Limited (AIML). AIML is a specialist emerging markets investment manager with nearly 30 years’ experience of investing in these markets. AIML is a private limited company registered in England & Wales.
PABC IPO received highest participation of PKR10.8 billion, which made it second largest IPO after Interloop Limited
Says Chief Executive Officer Arif Habib Limited
Pakistan Aluminium Beverage Cans Limited (PABC or the Company) started its operations in 2017 as the sole local manufacturer of aluminium beverage cans in Pakistan, realizing the potential of growth in Pakistan’s & Afghanistan’s carbonated soft drinks market which relied upon imported cans. Manufacturing facility of the Company is situated in M3 Industrial City, Faisalabad, which is a Special Economic Zone (SEZ) and is well positioned close to certain major bottlers and beverages companies including Coca Cola and PepsiCo Pakistan. The Company enjoys a 10-year tax holiday at the SEZ under the Special Economic Zone Act which started from July 2017. However, PABC pays minimum turnover tax at the rate of 1.5 percent.
The proximity to the local beverage companies, the location near the motorway network, a route to Afghanistan market, lower cost of locally produced cans versus imports and significant saving on transportation has allowed PABC to establish strong footprints in the local and Afghanistan’s market within a short span of time reaching volumetric sales of 402 million cans in CY20 from 200 million cans in CY18 showing a growth of over 100 percent on volumetric basis in 2 years.
