Select Technologies Limited, a wholly owned subsidiary of Air Link Communication, is set to launch its Initial Public Offering (IPO) through the Book Building method on the Pakistan Stock Exchange (PSX) after securing approvals from the Securities and Exchange Commission of Pakistan (SECP) and the stock exchange.
The company plans to raise funds to expand its manufacturing operations, including the establishment of a new air conditioner production facility and investments in smartphone manufacturing.
Company to Offer Nearly 89 Million Shares
According to details released to the exchange, Select Technologies will offer a total of 88,888,889 ordinary shares.
Out of the total offering, 66,666,667 shares, representing 75 percent of the issue, will be offered through the Book Building process. The shares carry a floor price of Rs28 per share, while the maximum price band has been set at Rs42 per share.
The remaining 22,222,222 shares, accounting for 25 percent of the issue, will be allocated to retail investors at the strike price determined through the Book Building process.
The retail portion of the IPO will be fully underwritten.
Book Building Process to Begin on June 22
Eligible participants interested in taking part in the Book Building process can register with PSX. Investors already registered with the exchange will not need to re-register.
According to the schedule, registration of eligible participants with the Pakistan Stock Exchange will start on June 17 and continue until June 23. Registration timings will remain from 9:00 am to 5:00 pm, while registration on the final day will close at 3:00 pm.
Expressions of Interest (EOIs) to the National Clearing Company of Pakistan Limited (NCCPL) will also be accepted from June 17 to June 23 between 9:00 am and 4:30 pm.
The bidding process will take place on June 22 and June 23 from 9:00 am to 5:00 pm.
Successful bidders will submit final payments on June 24, while unsuccessful investors will receive refunds of their margin money on the same day.
Funds to Support Manufacturing Expansion
The company intends to use the IPO proceeds primarily to establish a new state-of-the-art production facility at Sundar Green Special Economic Zone in Lahore.
The facility will focus on the manufacturing and assembly of air conditioners, strengthening the company’s position in Pakistan’s consumer electronics market.
In addition, the funds will support the expansion of Select Technologies’ television production line.
The company also plans to invest in plant and machinery for smartphone manufacturing and meet working capital requirements.
Arif Habib and Intermarket Securities Named Joint Consultants
Arif Habib Limited and Intermarket Securities Limited are serving as joint consultants to the issue.
The IPO marks another addition to Pakistan’s capital market and comes at a time when authorities are encouraging more companies to seek financing through the stock market.
Recent successful IPOs have boosted investor confidence and highlighted growing interest in Pakistan’s equity market.
Analysts believe the offering could attract strong investor interest given the company’s association with Air Link Communication and its plans to expand local manufacturing capabilities.
The investment will also support Pakistan’s broader efforts to increase domestic production and reduce reliance on imported consumer electronics.