Air Link Communication Limited intends to offer 90Mn shares (25% of its post paid up share capital) to the general public, in the form of 60Mn new shares and 30Mn offer-for-sale by the largest sponsor of the company, Mr.Muzzaffar Hayat Piracha. At its floor price, the company intends to raise PKR 5.8Bn, making it the largest IPO in the history of Pakistan.

The company has shown exceptional 5-year revenue and PAT CAGR of 49% and 29%, respectively. It is worth highlighting that the company started off from a small revenue base of PKR 140Mn in FY10 and has grown impressively to PKR 47Bn revenues in a period of just 11 years.

Going forward, the company is expected to undergo a 5-year revenue CAGR of 26%, which is considerable given the high base of FY21. We recommend subscribing up to the ceiling price of PKR 91/sh, which translates into FY22E P/E of 8.9x. The company has no direct match on the bourse, therefore, we have applied a 45% discount to the weighted average industry P/E of 26.2x to arrive at target P/E multiple of 11.8x and FV of PKR 120/sh for Air Link.

Courtesy – BMA Capital Management Ltd.