Secure Logistics Group Ltd IPO’s book-building phase will be held on March 27th and 28th. High-net-worth individuals and institutional investors will subscribe to 100% of the issue size (50 million shares). 

The bookbuilding will start at the floor price of Rs 12 per share. Based on investor interest during the book-building process, the strike price can rise by 40 percent to Rs 16.80 a share, thus potentially helping the company raise Rs 840 million.

After the book-building process, successful bidders will be provisionally allotted 75 percent of the issue size (50 million shares). The remaining 25 percent shares will then be offered to retail investors at the strike price. SLG aims to raise a minimum of Rs 600 million by offering an 18 percent stake in the company to institutional and general investors.

SLG has also already secured pre-IPO equity of Rs585 million from existing strategic investors like Saudi Bugshan Group ( a large Saudi conglomerate) and Karandaaz Pakistan, a FDCO-backed development finance institution.

The primary purpose of the equity capital raising is to “deleverage the balance sheet in an unprecedented high-interest rate environment, enhance the company’s technology infrastructure base to complete the ongoing Tech-Pivot, and initiate expansion into the regional markets.”

The company has a solid track record of capital market transactions to boost business growth.  It successfully closed Rs600 million convertible Term Finance Issue in 1Q CY19 and raised another PKR 1.2 billion through equity issue to Saudi Bugshan Group and Karandaaz Pakistan in 1Q CY20.  SLG’s  IPO has been priced at an attractive trailing P/E of 5.39x at the floor price of Rs12.