IPO: Hi-Tech Lubricants’ book-building on Jan 6-7

Company to offer 29m shares, floor price set at Rs37 per share

LAHORE: The first-stage offering of Hi-Tech Lubricants Limited (HTLL), the distributors of Pakistan’s leading machine lubricants brand-ZIC oil, through the book-building process is going to be held on Jan 6-7, 2016 at the Pakistan Stock Exchange.

This was stated by Hi-Tech Lubricants Limited Chairman Mr Shaukat Hassan during the pre-book-building road show held for corporate and high net worth individuals (HNWI).

HTLL is offering 29 million new shares through the IPO, with 75% or 21.75 million being offered through the book-building process and 25% or 7.25 million to be offered through the IPO to the general public. The floor price of HTLL’s shares has been set at Rs37 per share.

At this price, the company expects to raise Rs1.07 billion from the market,” stated the company. “The proceeds from the sale of new shares will go towards the expansion of HTLL’s retail network and investment in the company’s 100% subsidiary Hi-Tech Blending (Pvt) Limited.”

The Company has already invested Rs1.7 billion on the blending plant, and another Rs200 million would be spent to introduce Jerry Can and Drum filling lines. The company plans to open 37 grand outlets in 11 major cities of Pakistan during 2015-16 through the sale proceeds of its new shares.

The road-show was held to highlight the investment features of High-Tech’s stock due to the company’s past growth record, and future expansion plans. HTLL has been witnessing a consistent growth rate of 19.4% over the past years, and its total revenue stood at 5.4 billion at the end of the financial year 2015. The company’s gross profit has also witnessed a compound annual growth rate (CAGR) of 18.6% from 2010 to 2015.

The company has 13.6% market share in the passenger car motor oil segment and an overall 5.5% share of the total machine lubricant market in Pakistan.

Published in The Express Tribune, December 24^th, 2015.

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