International Steels chairman Kemal Shoaib rang the opening bell at the Karachi Stock Exchange (KSE) on Wednesday morning to mark the commencement of the company’s trading at the bourse.
The steel producing company made a stellar debut at the index as it gained more than five per cent and was the second most traded stock during the day.
International Steels will expand operations in the coming two years that will significantly reduce production costs, the company’s chairman Kemal Shoaib said on Wednesday at the Karachi Stock Exchange.
Following the initial public offering, International Industries Limited management holds a 55 per cent stake while 45 per cent is held by investors including Japanese companies JFE Steel Corporation and Sumitomo.
Karachi Stock Exchange Managing Director Nadeem Naqvi said that two or three more initial public offerings will be witnessed in the second half of the year at the Karachi Stock Exchange. International Steels initial public offering was the first initial public offering (IPO) of 2011.
Naqvi while talking about the company said that the steel sector is lucrative as demand is more than supply in the country.
The book building exercise of International Steels conducted in April received a huge response by institutions and high net worth individual investors as the bid volume came out to 150.8 million shares, 2.4 times more than the initial offer of 61.8 million shares. The strike price of the share was at Rs14.06 per share against the offer price of Rs12.9 per share.
Published in The Express Tribune, June 2nd, 2011.
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