Offered by Book Building Method at a Floor Price of PKR 12.00/- per share
A Brief Note on on Initial Public Offering (IPO) of Secure Logistics Group Ltd, [formerly Asia Capital Partners (Private) Limited] (the "Company" or "SLG").
PRINCIPAL PURPOSE OF THE EQUITY CAPITAL RAISING:
The purpose of offering is primarily to build equity base and retire some debt in high interest rate environment.
Issue Size and Method of Offering:
50,000,000 Ordinary Shares (i.e. 18.27% of the total post-IPO paid up capital of Secure Logistics Group Limited) of face Value of PKR 10.00/- each.
The entire Issue will be offered through Book Building Method at a Floor Price of PKR 12.00/- per share (including premium of PKR 2.00 /- per share) with a maximum price band of up to 40%.
Pre-IPO Private Placement:
In addition to this Issue, the Company has also signed agreements to issue 55,704,113 Ordinary Shares (20.36% of the total Post-IPO Paid Up Capital) at a price of PKR 10.5/- Per share (including premium of PKR 0.5/- per share) to KBP Limited, Karandaaz Pakistan and the Sponsor.
Retail/General Public Portion:
General Public portion of the Issue comprises of 12,500,000 ordinary shares (25% of the total issue) at the Strike Price.
KEY RISK FACTORS
SLG operates primarily in the logistics industry, focusing on long-haul and distribution segments. There are no comparable logistics companies listed on the PSX, and risks associated with the industry are not well-known to the market.
SLG has not yet made any orders with potential suppliers for transportation assets or entered into agreements for projects using IPO proceeds. Delays in procurement or project execution may lead to delays in initiatives.
SLG has not acquired land in the Special Economic Zone (SEZ) yet, though negotiations are ongoing. Failure to secure land in the SEZ could lead to delays and affect profitability and tax credits in the warehousing segment.
SPONSORS:
SLG is a family-owned business. The Sponsor Shareholders (“Sponsors”) of the Company are:
1. Pervaiz Afzal Khan
2. Gulraiz Afzal Khan
3. Mahnoor Afzal Khan
4. Saad Afzal Khan
5. Afshan Nasir
6. Javed Afzal Khan
CAPITAL STRUCTURE
Post IPO, the Equity Capital Structure, Shareholding pattern and Dilution is provided in the table below:
The aggregate proceeds from the pre-IPO at Rs. 10.50 and IPO at the Floor Price are expected to be as follows:
Disclaimer: This is not an investment advice. PakInvestor has not carried out any Investment appraisal for this Company.
Read the Prospectus of the Company before making an investment.