Mughal Steel to start IPO process by mid March

LAHORE: After successful book building Mughal Iron and Steel Industries Limited (Misil) will start the IPO process in which it will offer the remaining 6.837 million shares to the general public through a public offering likely to take place by mid of March 2015.
CEO of Mughal Steel, Khurram Mughal shared on Monday while addressing the investors at the Lahore Stock Exchange (LSE). He said that the journey towards listing on the domestic market for the Misil started with a rousing response from the institutional and high net worth individuals with a total bidding amount of Rs2.3 billion, more than three times what the company expected to raise.
The strong interest from the investors can be gauged from the fact that the entire block of 20.512 million shares offered for book building was picked up by the investors, bidding at the top end of the price range, ie @Rs 34/- per share, within a matter of minutes of starting the electronic book-building process, he added.
A long queue of eager investors was at the offices of the AKD Securities, the book runner of Misil, in Karachi, Lahore, and Islamabad Stock Exchanges, hours before the commencement of the bids at the market opening time.
Only a handful of investors emerged successful in getting the shares during the book building process, which was undertaken under the presence of the representatives of the Stock Exchanges to ensure seamless completion.
The book-building bidding window was universally made available on KSE’s website to ensure that live data was available for viewing to all and sundry in the market.
The management of Mughal Steel expressed its gratitude to all stakeholders; including the Securities and Exchange Commission of Pakistan (SECP), the stock exchanges and the investors.
In the next stage of the IPO Process, Misil shall offer the remaining 6.837 million shares to the general public through a public offering likely to take place by mid-March. It may be mentioned that under the IPO prospectus, the funds from the general public would be spent on the expansion of “Direct Rolling” production for the tandem section mill acquired in 2013 with an annual capacity of 300,000 M/T.
The Company envisages that the up-gradation / BMR of the existing re-rolling mill will result in 30 percent increased production and facilitate growth in the profit margins through reduced manufacturing costs.