PABC's IPO Receives Overwhelming Response From Investors

The book-building phase of Pakistan Aluminium Beverage Cans Limited's initial public offering concluded with an over subscription of 3.3 times--from institutional investors and high-net worth individuals as the strike price clocked in at Rs 49 per share; 40 percent higher than the floor price of Rs 35

KARACHI, (UrduPoint / Pakistan Point News - 23rd Jun, 2021 ) :The book-building phase of Pakistan Aluminium Beverage Cans Limited's initial public offering concluded with an over subscription of 3.3 times--from institutional investors and high-net worth individuals as the strike price clocked in at Rs 49 per share; 40 percent higher than the floor price of Rs 35.

PABC, the country's only Beverage Can manufacturer announced through a statement, here on Wednesday , the company had 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 Chief Executive Officer of Arif Habib Limited, Shahid Habib who is the Advisor and Book Runner of the issue.

Several brokerages had issued almost unanimous calls to 'subscribe,' which resulted in investor demand amounting to Rs 10.8 billion against the IPO's book-building size of Rs 3.3 billion.

The general public will subscribe to 23.

4 million shares (25 percent of the total offer size) on 29 and 30 June, 2021 at the strike price of Rs 49.

CEO Pakistan Aluminum Beverage Cans Limited, Azam Sakrani thanked the institutions and individual investors for showing interest and trust in PABC, and assured that their investment in company would yield greater dividends.

The company had started its operations in 2017 as the country's only local manufacturer of aluminum beverage cans. PABC supplies beverage Can to the bottlers of all major carbonated drinks including PepsiCo and Coca-Cola in both Pakistan and Afghanistan. Exports to Afghanistan constituted 35 per cent of the company's sales in Calendar year 2020.

It has grown its revenue at an annual rate of 18.7 per cent 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 by 314 per cent from 2019. It expects its bottom line to grow at 140 per cent in 2021.