IPO: Hascol ready to make stock market debut
Company to become fifth OMC to be publicly listed.
The floor price HPL offers is an attractive investment opportunity compared with other OMCs. PHOTO: FILE
LAHORE:
Hascol Petroleum limited (HPL), is all set to be listed in the Karachi and Lahore Stock Exchanges, offering 25 million shares that will represent 27.59% of the post Initial Public offering (IPO) at a floor price of Rs20 per share.
The expected time for book-building is the last week of the current month. This will be followed by the general public portion, which will be held within two to three weeks of the successful completion of the book-building, said Liaquat Ali, HPL director, in a corporate briefing at the Lahore Stock Exchange (LSE). Three-fourths of the issue, amounting to 18.75 million shares, will be issued in book-building, while the remaining, amounting to 6.25 million shares, will be issued to the general public, he added.
HPL will be the fifth oil marketing company to be publicly listed after Pakistan State Oil, Shell Pakistan, Attock Petroleum and Byco petroleum.
According to Ali, the floor price HPL offers is an attractive investment opportunity compared with other OMCs. Strategic investors have recently purchased 3,875,000 ordinary shares of HPL from existing shareholders of HPL at Rs25 per share; which shows the level of investor confidence of investors on HPL growth trajectory.
Incorporated in 2001, HPL currently has a 2.4% market share. The company sales stood at Rs57,441 million for the financial year ended December 2013, while for 2012, it was Rs29,775 million The company posted a profit after tax of Rs392 million in 2013, up 80% compared to the previous year. “Within the next 2 years, the company has targeted a market share of 5%,” Ali said.
The company has a plan to inject additional equity via this IPO for completion of the Machike storage facility in Punjab and for setting up new retail outlets across Pakistan. Currently, HPL has 210 outlets across Pakistan, and is planning to add 50 more by the end of 2014, and another 91 fuel stations by the end of 2016. Currently 50% of the company’s sales are through the 210 sites, while the remaining are from commercial and corporate clients.
Published in The Express Tribune, February 25th, 2014.
Hascol Petroleum limited (HPL), is all set to be listed in the Karachi and Lahore Stock Exchanges, offering 25 million shares that will represent 27.59% of the post Initial Public offering (IPO) at a floor price of Rs20 per share.
The expected time for book-building is the last week of the current month. This will be followed by the general public portion, which will be held within two to three weeks of the successful completion of the book-building, said Liaquat Ali, HPL director, in a corporate briefing at the Lahore Stock Exchange (LSE). Three-fourths of the issue, amounting to 18.75 million shares, will be issued in book-building, while the remaining, amounting to 6.25 million shares, will be issued to the general public, he added.
HPL will be the fifth oil marketing company to be publicly listed after Pakistan State Oil, Shell Pakistan, Attock Petroleum and Byco petroleum.
According to Ali, the floor price HPL offers is an attractive investment opportunity compared with other OMCs. Strategic investors have recently purchased 3,875,000 ordinary shares of HPL from existing shareholders of HPL at Rs25 per share; which shows the level of investor confidence of investors on HPL growth trajectory.
Incorporated in 2001, HPL currently has a 2.4% market share. The company sales stood at Rs57,441 million for the financial year ended December 2013, while for 2012, it was Rs29,775 million The company posted a profit after tax of Rs392 million in 2013, up 80% compared to the previous year. “Within the next 2 years, the company has targeted a market share of 5%,” Ali said.
The company has a plan to inject additional equity via this IPO for completion of the Machike storage facility in Punjab and for setting up new retail outlets across Pakistan. Currently, HPL has 210 outlets across Pakistan, and is planning to add 50 more by the end of 2014, and another 91 fuel stations by the end of 2016. Currently 50% of the company’s sales are through the 210 sites, while the remaining are from commercial and corporate clients.
Published in The Express Tribune, February 25th, 2014.