Ashmore Investment to sell its stake in Pakistan’s can maker

Ashmore Investment Management Ltd is planning to sell part of its stake in Pakistan Aluminium Beverage Cans Ltd (PABC), a drink packaging manufacturer in an initial public offering (IPO) in June, reported Bloomberg.

As per details provided by PABC, Ashmore Mauritius PABC Limited, which is the sponsor of PABC is divesting 26% of the paid up capital of the Company through this Offer For Sale. The offer comprises of 93,888,000 Ordinary Shares of face value worth PKR 10/- each offered by the Ashmore Mauritius PABC Limited.

The entire offer of 93,888,000 Ordinary Shares will be offered through the book building process at a Floor Price of PKR 35/- per share i.e. translated into Rs3.3 billion rupees ($22 million).

Initially, 75% of the Offer size i.e. 70,416,000 Ordinary Shares will be allotted to successful bidders and 25% of the Offer i.e. 23,472,000 Ordinary Shares will be offered to retail investors. Unsubscribed shares, if any, of the General Subscription portion will be allotted to successful Bidders of the Book Building Portion on a pro-rata basis.

The Floor Price of PKR 35/- has a maximum Price Band of 40%, above which no Bid shall be accepted. At maximum Price Band, the Strike Price shall be PKR 49/- per share

Ashmore Mauritius PABC Limited has also entered into agreements to sell 18,052,974 shares i.e. approximately 5% of the paid up capital of Company at a price of PKR 30.80 per share to Mrs. Hamida Salim Mukaty (part of Liberty Group) and 72,221,651 shares i.e. approximately 20% of the paid up capital of Company at a price of PKR 31.85 to Soorty Enterprises (Private) Limited.

Pakistan Aluminium Beverage Cans Limited (PABC) started its operations in 2017 as the sole local manufacturer of aluminium beverage cans in Pakistan. Manufacturing facility of the Company is situated in M3 Industrial City, Faisalabad, which is a Special Economic Zone (“SEZ”).