IPO: Hi-Tech Lubricants to offer 7.25m shares to public

Public offer will take place from Jan 25-27 at a price of Rs62.5 per share

LAHORE: Hi-Tech Lubricants Limited has announced that the company will offer 7.25 million shares to the general public at a price of Rs62.50 per share in its initial public offering (IPO) which will take place from January 25 to 27.

“With the completion of this second round of fund-raising, Hi-Tech Lubricants will become the first company to be listed on the recently integrated Pakistan Stock Exchange. It will also become the first IPO for 2016,” the company said in a statement on Wednesday.



Earlier on January 7, the book-building portion of the IPO was over-subscribed by 2.24 times by high net-worth individuals and corporate firms. The company got a strike price of Rs62.50 per share against the offered price of Rs37 because of high demand in the market.

Hi-Tech Lubricants is offering a total of 29 million shares and is expected to raise Rs1.8 billion after the completion of the process.

Arif Habib Limited is the lead manager, arranger and book runner for both segments of the IPO.

Hi-Tech Lubricants CEO Hassan Tahir expressed confidence that like the over-subscription of shares during the book-building process, the general public issue would also be over-subscribed.

“The demand for the company’s shares … is a reflection of confidence of investors in the business plan of the company,” he said.



Hi-Tech Lubricants says it enjoys a 13.6% market share in passenger car motor oil segment and an overall 5.5% share in the machine lubricant market in Pakistan. Its product portfolio, under the brand name of Zic, includes specialty lubricants in automotive, industrial and marine segments, which are imported from SK Lubricants, South Korea.

Published in The Express Tribune, January 21^st, 2016.

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