KARACHI: Arif Habib Limited has announced that 10,221,875 shares of Service Global Footwear Limited (SGFL) are being offered to general public from 12th and 13th April, 2021 at the strike price of Rs 53.2 per share as determined through the book building process.
The book building saw a tremendous response from investors with interest of Rs 8.95 billion against the issue size of Rs 1.55 billion; an oversubscription of 5.8 times.
The overwhelming participation from investors helped increase the price to the maximum limited of Rs 53.2 per share.
A brief overview of the IPO, specifically the general public issue is provided herein below:
SGFL is the largest footwear exporter of Pakistan since the last decade; in last two years, it has accounted for over 40 percent of the total leather footwear exports of the country. SGFL exports more than 95 percent of its total production; in CY2020, it exported footwear to 20+ countries over 5 continents.
The company supplies footwear to global brands like Zara, Caprice, Diana Ferrari, Dockers, Jack and Jones, London Rebel, etc.
The principal purpose of the issue is to invest the amount raised as an equity in Service Long March Tyres Ltd. (SLM) and become a stakeholder of approximately 18.91 percent of the total shareholding of SLM. SLM is the first All Steel Radial truck and bus tyre manufacturing unit in Pakistan, being setup through a JV between Servis Group and Chaoyang Long March of China.
The company has appointed Arif Habib Limited as the Lead Manager and Book Runner for the IPO.
Copyright Business Recorder, 2021
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