PABC's IPO oversubscribed as hungry investors take price to Rs49

(Karachi) Stock-hungry investors swooped in to take the price of Pakistan Aluminium Beverage Cans (PABC) to its maximum limit of Rs49 per share as the book-building process concluded on Wednesday.

The Initial Public Offering (IPO) was oversubscribed by 2.5 times with bids for 233 million shares being made against the offer for sale of 93.8 million shares. According to details available with Business Recorder, the price stayed below Rs40 until the final few minutes before IPO-hungry investors swooped in.

PABC gears up as Pakistan’s eighth IPO this fiscal year, highest since 2009-10

The process helped the company raise Rs4.6 billion, becoming the second largest private offering in Pakistan, according to data compiled by Bloomberg.

In a tweet, the Chief Executive Officer at Arif Habib Limited – advisor to the transaction – Shahid Ali Habib said the book-building process saw participation of Rs10.8 billion — highest among the nation’s private sector IPOs.

“Foreign investors also participated in book building,” said Habib.

Background

Ashmore Mauritius PABC Limited offered 93.9 million shares, 26% of paid-up capital, in Pakistan Aluminium Beverage Cans (PABC) Ltd, hoping to raise at least Rs3.29 billion from the country’s capital market.

An indicative price range of Rs35 to Rs49 per share was shared by AHL, which also conveyed that a separate private placement of 18.1 million shares (5%) at Rs30.8 has occurred in addition to 72.2 million shares (20%) at Rs31.85 going to another investor called Soorty Enterprises, a Karachi-based textile company.