The book-building process of Fast Cables Limited’s initial public offering (IPO) will take place on May 15 and 16 as the company looks to raise Rs3 billion with an aim to utilise the funds for capacity expansion.
The retail public offer will be conducted on May 22 and 23rd.
The development was shared by Kamal Mahmood Amjad Mian, Managing Director at Fast Cables Limited, in an interview with BR Research published on Tuesday.
“We have planned to raise Rs3 billion in capital by issuing new shares,” Kamal Mian told BR Research.
“The main objective is the expansion of our existing manufacturing capacities,” he said, adding that the company plans to utilise the IPO proceeds to primarily fund plant and machinery and its related infrastructure.
Back in January, Business Recorder was the first to report that Fast Cables among other companies including Emaar Pakistan, CCL Pharmaceuticals, FF Steel, and International Packaging Films were all at different levels in the process of exploring the listing option at the Pakistan Stock Exchange (PSX).
“Our success story has been to provide the best product in Pakistan so there is no dependency on imported products on the basis of their quality. We believe to make it (to take this success) beyond our generation and to empower the community’s vision, we need to be part of the capital markets,” Kamal Mian stated back then.
Meanwhile, talking to BR Research, the Fast Cables MD shared that as per his company’s five-year plan, by the end of 2025, it is expected to face some bottlenecks in its capacities.
“Therefore we want to plan and execute our strategy timely to remove any potential bottlenecks,” he said, citing the IPO.
“In addition, we want to tap into emerging cable categories that are currently being imported.”
Kamal Mian said that the projected capacity expansion is targeted to meet growth and future demand while increasing export contribution by penetrating markets within the MENA region.
The managing director also added that the company’s key export markets include UAE, Saudi Arabia, Ghana, Tanzania, Uganda, Iraq, and Afghanistan.
“Currently, our exports are less than 5 percent of total revenue, but we plan to take our export share to 10 percent.”
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