KARACHI: Avanceon Limited (AVN) intends to issue 25.17 million shares through listing of its shares on the Karachi and Lahore stock exchanges, according to Arif Habib (AHL) Research.
It would be the third initial public offering of the year in the country’s capital market. The number of shares is equal to 25percent of post-IPO paid-up capital.
AVN is a leading provider of automation, control systems integration, proprietary energy management solutions and support services.
The company is seeking interest from select groups of institutional and high net worth investors to participate in the book-building process, which will be followed by a general public offering, said the AHL research.
The floor price for the transaction has been set at Rs14 per share and formal book-building will be conducted on 27-28 November, 2013, said Numair Ahmed, stock analyst at AHL Research in a report.
The company is among the select group of ‘certified members’ of Control System Integrators Association and listed on the control engineering magazine’s system integrator hall of fame.
In Pakistan, AVN is the only local company with the capability of automation and process controls, energy management systems and specialised solutions.
International companies that used to operate in Pakistan have taken an exit due to the prevailing political, law and order situation and no other local company has the expertise to deliver such complex solutions.
Avanceon Limited has taken over several contracts, which were allocated to international contractors earlier due to their inability to meet on ground service requirements.
This window of opportunity has enabled Avanceon Limited to establish long-term relationship with blue-chip companies. AVN has implemented various solutions in different companies, including big names such as Fauji Fertilizer Company, Nestle Pakistan, Engro Fertilizer and Engro Foods, Pakistan Petroleum Limited, Akzo Nobel Pakistan, Kott Addu Power Company and P&G Pakistan, to name a few.
Currently, Avanceon Limited has offices in Dubai, UAE (covering Middle East) by their 100 percent-owned subsidiary Avanceon Free Zone Establishment UAE (AFZE), Lahore, Pakistan (covering South East Asia) and Pennsylvania, United States of America (covering North America) by their other 100 percent subsidiary and Engro Innovative Inc. USA (EI).
AVN, at present, operates in three broad categories, which are automation controls, energy efficient systems and aftermarket services.
As per the current shareholding, the Wain Family owns 100 percent of the existing 75.5 million shares of Avanceon Limited.
Avanceon Limited has been into the automation business for the last 24 years and has, over the years, evolved from being an automation company to a 360-degree solution provider for automation, energy management and service and maintenance needs of their customers.
The company has explored various frontiers and geographies, establishing strong footprint in South Asia, the Middle East and US.
Servicing clients over a span of two decades, Avanceon Limited has completed several projects for major blue-chip companies, enabling it to earn strong credentials, move up the learning curve and develop a diverse client base essential for a sustainable business model.
In the Middle East, AVN has gained dominance through its unique international execution model.
The company is able to compete with several major competitors through its aggressive pricing and, therefore, has managed to come in the league of major automation and control provider in the Middle East.
Saudi Aramco, Dubai Metro and Kuwait Petroleum are a few big names to whom AVN has successfully provided and implemented various automation solutions.