Hi-Tech Lubricants Limited’s book building over-subscribed by 2.23 times with bids of 48.674Mn against 21.75Mn
Lahore, January 07, 2016 (PPI-OT): The book building portion of Hi-Tech Lubricants Limited’s shares has been over-subscribed by 2.23 times after the two day book building process of the first stage IPO of the company, which closed today. The share price of the company’s shares were offered at the base price of Rs 37 per share, however due to a very high demand during the book building process, the closing strike price of the shares came to Rs 62.50 per share.
The book-building process was only available for bidding from the corporate entities and high net worth individuals (HNWI). As a result of the steep demand of the company’s share, the company was able to raise Rs 1.35Bn from the book building process in which 75% or 21.75Mn out of the company’s offered shares of 29Mn were made available for bidding in the market. In the next stage of IPO, the remaining 25% or 7.25Mn shall be offered to the general public at the same strike price of Rs 62.50. In this way, the company shall be able to further raise a sum of Rs 453Mn, thereby bringing the total proceeds of Rs 1.8Bn for the company.
Commenting on the excellent response of the investors to the book building offer of shares, Mr. Shaukat Hassan, director of Hi-Tech Lubricants stated that the board and the management of the company are quite thankful to the investors for posing their confidence in the future of our company. He said that the company is also extremely happy to become the first ever listed company after the formation of Pakistan Stock Exchange (PSX).
It may be mentioned that Hi-Tech Lubricants enjoys 13.6% market share in passenger car motor oil segment and an overall 5.5% share of the total machine lubricant market in Pakistan. HTLL’s solid market positioning and a widespread distribution network of 150+ distributors across Pakistan. Hi-Tech’s product portfolio, under the brand name of “ZIC”, includes a wide range of specialty lubricants in automotive, industrial and marine segments, which are imported from SK Lubricants Ltd., South Korea, ensuring highest quality and maximum protection against engine and machine wear.
Arif Habib Limited is the Lead Manager, Arranger and the Book Runner for both the IPO portions of the public offering of HTTL’s shares.
For more information, contact:
Barkat Ali Anjum
Deputy Manager-Media and Public Relations Department
Lahore Stock Exchange (LSE)
Lahore Stock Exchange Building,
19, Khayaban-e-Aiwan-e-Iqbal, P. O. Box: 1315,
Lahore – 54000, Pakistan
Category: General Business News