Pakistan’s Mecom Gas Pvt Ltd eyes $20mn IPO to build LPG storage: report
Mecom Gas plans an IPO to raise $20 million for a new LPG storage facility, aiming to mitigate Pakistan's energy crunch and rising fuel prices exacerbated by regional conflicts.
- Mecom Gas's IPO to fund new LPG storage.
- Pakistan's energy crisis and import reliance.
- Rising LPG prices due to regional conflicts.
Mecom Gas Pvt Ltd, a Pakistani Liquefied Petroleum Gas (LPG) marketing and distribution company, is considering an initial public offering (IPO) on the Pakistan Stock Exchange to raise $20 million for the construction of a liquefied petroleum gas storage facility.
According to Bloomberg, the company, which imports LPG from the Middle East and distributes it across Pakistan, is in talks with the investment bank Arif Habib Ltd. to advise on the IPO, Chief Executive Officer Kamran Afzal said.
The company seeks to build 3,000 tons of storage capacity with the proceeds, he said.
According to the report, Pakistan’s energy sector is facing a crunch due to the war in Iran.
The South Asian nation remains heavily dependent on Gulf states for oil and gas imports, with recurring balance-of-payments pressures. The country’s current account swung back into deficit in April as a sharp rise in imports, driven largely by higher global oil prices, outweighed earlier gains.
Mecom CEO said that the country’s LPG sector is facing similar disruptions as the price of the fuel has doubled in the last six months.
Kamran said the war’s impact has driven Mecom Gas’ momentum to expand storage facilities, which would help mitigate price swings. Storage capacity needs to more than double to have proper reserves, he added.
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