Ittefaq Iron set to raise financing of Rs1.26b at PSX
Strike price set at Rs30.2 through book-building process
The excess funds raised in IPO will be used to repay short-term borrowings and redesign plant and machinery. PHOTO: EXPRESS
KARACHI:
Ittefaq Iron Industries Limited (IIIL) has set its share price at Rs30.2 through the book-building (bidding) process, which will enable it to raise Rs1.26 billion against the issuance of 41.75 million shares to high net-worth individuals and general public at the Pakistan Stock Exchange (PSX).
The financing from stock investors would allow the company to inject the much-needed working capital.
The company had initially targetted to raise Rs501 million from the issuance of shares at a floor (minimum) price of Rs12 per share. However, the bidding process took the strike price to Rs30.2 per share, which would help the company to raise a total equity of Rs1.26 billion at the exchange.
“The excess funds will be used to repay short-term borrowings, modify and redesign plant and machinery including the Girder Mill (subject to viability) and any other activity related to the company’s operations as deemed necessary by the board of directors,” Topline Securities said while quoting the company’s prospectus.
IIIL stock would soon be listed and available for trade at the PSX. This is the second company to raise funds from the market in 2017.
Earlier, Roshan Packages raised financing of Rs2.1 billion at the stock exchange in January. In 2016, three new companies were listed at the PSX including Hi-Tech Lubricants and Loads Limited.
Published in The Express Tribune, May 12th, 2017.
Ittefaq Iron Industries Limited (IIIL) has set its share price at Rs30.2 through the book-building (bidding) process, which will enable it to raise Rs1.26 billion against the issuance of 41.75 million shares to high net-worth individuals and general public at the Pakistan Stock Exchange (PSX).
The financing from stock investors would allow the company to inject the much-needed working capital.
The company had initially targetted to raise Rs501 million from the issuance of shares at a floor (minimum) price of Rs12 per share. However, the bidding process took the strike price to Rs30.2 per share, which would help the company to raise a total equity of Rs1.26 billion at the exchange.
“The excess funds will be used to repay short-term borrowings, modify and redesign plant and machinery including the Girder Mill (subject to viability) and any other activity related to the company’s operations as deemed necessary by the board of directors,” Topline Securities said while quoting the company’s prospectus.
IIIL stock would soon be listed and available for trade at the PSX. This is the second company to raise funds from the market in 2017.
Earlier, Roshan Packages raised financing of Rs2.1 billion at the stock exchange in January. In 2016, three new companies were listed at the PSX including Hi-Tech Lubricants and Loads Limited.
Published in The Express Tribune, May 12th, 2017.