Select Technologies announces Rs2.5bn IPO to establish AC manufacturing facility in Pakistan

Select Technologies Limited, a wholly owned subsidiary of Air Link Communication Limited, plans to raise Rs2.489 billion at the floor price through its Initial Public Offering (IPO), as the company seeks to expand local manufacturing of smart devices and consumer appliances in Pakistan.

As per a statement, the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange Limited (PSX) have approved the issuance, circulation and publication of the prospectus for the IPO of 88,888,889 ordinary shares, representing 10% of the post-IPO paid-up capital of the Company. The issue will be offered through the book building method.

Under the approved structure, 75% of the issue size, comprising 66,666,667 shares, will be offered to eligible investors through book building at a floor price of Rs28 per share, with a maximum price band of up to 50%, translating into a cap price of Rs42 per share.

The remaining 25% of the issue, comprising 22,222,222 shares, will be offered to retail investors at the strike price determined through the book-building process.

The retail portion of the IPO will be fully underwritten.

Registration of eligible investors will commence on June 17, 2026, and close on June 23, 2026, while the Book Building will be conducted on June 22 and June 23, 2026. The public subscription is scheduled for July 2 and July 3, 2026.

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Arif Habib Limited and Intermarket Securities Limited are acting as joint consultants to the issue.

The IPO proceeds will primarily be utilised to finance the establishment of a new state-of-the-art production facility at Sundar Green Special Economic Zone, Lahore, for the manufacturing and assembly of air conditioners.

The proceeds will also support expansion of the company’s TV production line, investment in smartphone plant and machinery, and working capital requirements.

SELECT is engaged in manufacturing and assembling smartphones, smart TVs, air conditioners, and other consumer appliances in Pakistan for globally recognised brands, including Xiaomi and Hisense.

Post-expansion, SELECT’s combined annual production capacity is expected to reach 7 million smartphones, 360,000 televisions and 400,000 air-conditioner units. The Sundar Green SEZ facility is also expected to provide strategic tax benefits through income tax exemption until FY2035, supporting improved margins and long-term shareholder value.

Pakistan’s capital market has shown strong momentum, with recent listings on the Pakistan Stock Exchange (PSX) delivering robust gains and reinforcing investor confidence.

“With 13 new listings and an average return of 47%, Pakistan’s capital market is showcasing powerful growth and investor confidence,” said PSX.