Karachi January 12 2022: Regal Automobile Industries Limited (the Company or the Issuer) has applied for listing on the Exchange.
The Company shall be issuing 25,000,000 Ordinary Shares using the 100% Book Building Method at a Floor Price of PKR 32/- per share.
In addition to this Issue of 25,000,000 Ordinary Shares, the Company will issue further 7,150,000 Shares (which amounts to 6.7% of the Post IPO Paid Up Capital) at a price of PKR 35.2/share (premium of 10% to the Floor Price) through Pre-IPO Private Placement.
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The principal purpose of the Issue is to invest the entire amount raised at the Floor Price in the Electric Vehicle assembly line. Apart from the new equity issuance through Pre-IPO & IPO, the Company will be allocating the internal cash towards the Electric Vehicle assembly line.
Regal Automobiles Industries Limited was incorporated as Public Limited Company 19th May 2016 under Companies Ordinance, 1984 (now as the Companies Act, 2017). The Company was formed to setup an automotive assembly under the ambit of Automotive Development Policy of 2016-2021.
During the year of 2016, the Government of Pakistan announced the Automobile Development Policy (2016-2021) which provided tax incentives to new entrants in order to help them establish manufacturing units in Pakistan and effectively compete with the existing three assemblers naming (i) Indus Motor Company, (ii) Pak Suzuki Motor Company & (iii) Honda Atlas Cars (Pakistan) Limited. The objective was to enhance customer welfare and boost competition in the Automobile Industry of Pakistan.
As part of its growth policy and avail the concessionary duty incentives, the Sponsors of Regal applied for the license of car assembly through Engineering Development Board and eventually established the Company as a Green Field Industrial Undertaking availing the reduced custom duty for five years overall the product portfolio from the start of its manufacturing.
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Regal has been granted the status of a Green Field Industrial Undertaking on 5th July 2017 under Automotive Development Policy.
Regal Automobiles Industries Limited has entered into a CKD Cooperation Agreement on 9th September 2016 with DFSK Motor Co. Ltd under which Regal imports the CKDs of the Glory 580, K01, K07 for local assembling at the plant, & CBUs of C-37 for sale in Pakistan. Regal imports the CKD kits and spare parts from the exclusive supplier of DFSK Motor Co Ltd namely Chongqing Sokon Motor (Group) Imp & Exp Co. Ltd. The CKD Cooperation agreement also entails to provide the technical and marketing assistance to Regal pertaining to the market development and after sales service of DFSK vehicles. Regal will keep on enhancing the product portfolio through introduction of new models and engage in localization as part of the agreement and ADP 2016-2021.
Regal Automobiles Industries Limited has entered into a CKD Cooperation Agreement on 9th February 2019 with Lijue Co. Ltd. Regal imports the CKDs of the Prince Pearl from exclusive supplier of Lijue Co Ltd namely Porvenir Imp & Exp Co Ltd for local assembling at the plant & further sale in Pakistan. The CKD Cooperation agreement also entails to provide the technical and marketing assistance to Regal pertaining to the market development and after sales service of 800CC Hatchback. Regal will keep on enhancing the product portfolio through introduction of new models and engage in localization as part of the agreement and ADP 2016-2021.
Regal distributes its Hatchbacks under the brand name of “Prince” and its SUVs, LCVs, & Vans under the brand name of “DFSK” through a vast network of 21 3S dealerships.
DFSK Motor Co. Ltd was founded in June 2003 as a joint venture between DongFeng Motor Corporation & ChongQing Sokon Industrial Group Co Ltd for production of DongFeng passenger vehicles such as SUVs, multipurpose & commercial vehicles. The joint venture has presence in the export markets since 2005 when it started exporting its commercial vehicles. DFSK’s commercial vehicles received the EU certification in October 2007, and since late 2007, the venture started exporting the commercial vehicles to European market. The venture has three manufacturing bases in China, Indonesia & USA, spanning seven manufacturing plants, with five being located in China, one in Indonesia & one in USA.
The venture has a vast product portfolio encompassing Sports Utility Vehicles & Multipurpose Vehicles under the brand name of Glory (Glory 580, Glory 500, Glory ix5, Glory ix7 Glory S560) & Commercial Vehicles under K-series (K-01, K-07, K-02, C-31, C-37). The venture has entered into research & development of electric vehicles in 2016 and launched the R&D center in Silicon Valley and has rolled out Seres Electric Vehicle line which offers a wide range of portfolio in SUVs, & Commercial Vehicles.
