Ashmore Investment Management Ltd, a UK-based Private Equity investor is offering 93.88 million Ordinary Shares of Pakistan Aluminium Beverage Cans Limited (“PABC” or the “Company”) representing 26% of the Paid-up Capital at a Floor Price of PKR 35.0/- per share through an Offer for Sale (“OFS”) and listing on the Pakistan Stock Exchange Limited.
PABC is the sole manufacturer of aluminium cans in Pakistan and has a 95% market share in Pakistan. It also exports cans to Afghanistan where it has a 50% market share. The manufacturing plant is situated at the Special Economic Zone, Faisalabad, and enjoys a 10-year tax holiday ending in July 2027.
PABC supplies aluminium cans to major bottlers/beverage companies including franchisees of Pepsi Co. and bottlers of Coca Cola in Pakistan and Afghanistan along with other beverage companies. In CY2020, export accounts for c. 35% of its total revenues. The Company has also started exporting to USA and Tajikistan in CY2021, expanding its global footprint.
The Company has decided to undertake an expansion of its production capacity from 700 million cans per annum to 950 million cans per annum; expected to come online by July 2022. The need for expansion is on the back of rising demand due to (i) increase in consumption of soft drinks and (ii) increasing penetration of aluminium cans for beverages.
A brief overview of the offer is provided herein below:
Shares Offered through Book Building: | 93,888,000 shares |
Floor Price: | PKR 35.0 per share |
Maximum Price: | PKR 49.0 per share |
Registration Dates: | 9AM – 5PM (June 17th to June 22nd, 2021) & 9AM – 3PM (June 23rd, 2021) |
Bidding Dates: | June 22nd, 2021 & June 23rd, 2021 (both days inclusive) 9AM – 5PM |
Minimum Bid Size | PKR 1.0 Million |
Bid Collection Center: | Arif Habib Centre, Karachi |
Public Subscription Dates | 29th and 30th June 2021 |
Arif Habib Limited has been appointed as the Lead Manager & Book Runner for the OFS.