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PABC becomes the second-largest private offering in Pakistan

Company supplies cans to Pepsi, Coca-Cola

SAMAA | - Posted: Jun 23, 2021 | Last Updated: 1 month ago
Posted: Jun 23, 2021 | Last Updated: 1 month ago

Pakistan Aluminium Beverage Cans Ltd has become the second-largest private offering in Pakistan after it attracted an oversubscription of 3.3 times during the book-building phase of Initial Public Offering.

The institutional investors and high-net worth individuals invested in the IPO as the strike price clocked in at Rs49 per share, 40% higher than the floor price of Rs35.

PABC has raised Rs 4.6 billion in total, making it the second-largest IPO in the private sector.

“The response to the book building has been phenomenal,” said Shahid Habib, the CEO of Arif Habib Ltd and advisor and book-runner of the IPO.

The investors demand amounted to Rs10.8 billion against the IPO’s book-building size of Rs3.3 billion.

The general public will subscribe to 23.4 million shares (25% of the total offer size) on June 29 and 30 at the strike price of Rs49.

The company started its operations in 2017. It supplies beverage cans to the bottlers of all major carbonated drinks, including Pepsi and Coca-Cola, in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35% of the company’s sales in the year 2020.

Established on a 20.9-acre piece of land in Faisalabad’s Special Economic Zone with a current rated capacity of 700 million cans per annum, PABC continues to enjoy a 10-year tax holiday. The company claims that it is increasing its rated capacity by almost 36% to 950 million cans per annum by July next year.

The company says it has grown its revenue at an annualised rate of 18.7% in the last five years. In the third full year of its operation (2020), the company’s net profit amounted to Rs 610.7 million, up 314% from 2019. It expects its bottom line to grow at 140% in 2021.

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