PSX lists Fast Cables Ltd

KARACHI: The Pakistan Stock Exchange (PSX) held a gong ceremony on Tuesday to mark the listing of Fast Cables Limited (FCL), a leading manufacturer of electrical cables and conductors in Pakistan.

Fast Cables becomes the fifth company to list via an IPO on the PSX in FY2023-24.

The IPO consisted of 128 million ordinary shares, representing 20.35 per cent of Fast Cables Ltd’s total post-IPO paid-up capital, each with a face value of Rs10. The shares were offered through the book-building method at a floor price of Rs23.5 per share, with a maximum price band of Rs32.90 per share.

The bids were placed for 100 per cent of the issue size, but successful bidders were provisionally allotted 75 per cent of the issue size (96 million shares), with the remaining 25 per cent (32 million shares) offered to retail investors via the public subscription.

The book-building phase generated significant interest, with the issue being oversubscribed by 1.57 times by value, determining a strike price of Rs24.45 per share. Applications totalling Rs4,702 million against the issue size of Rs3,008 million were received from 642 investors, of which 561 were successful.

For the public subscription, 3,959 applications were received for 14,201,000 shares, amounting to Rs347,214,450. The PSX e-IPO system saw 607 applications for 1,113,000 shares, totalling Rs27,212,850. Overall, Rs3,129.606 million was raised from the book building and the public subscription. The proceeds from the IPO will be utilized for acquiring new land, constructing a state-of-the-art building, installing new plant and machinery, and repaying debt associated with these components.

During the ceremony, MD & CEO of the PSX Farrukh Khan highlighted the efficiency of the current listing process at the PSX, which now takes only 29 working days from documentation submission to actual listing. He highlighted ample liquidity and significant investor interest in the market, urging more companies to consider listing on the exchange.

MD of Fast Cables Ltd Kamal Mian expressed his gratitude to all stakeholders and highlighted the company’s commitment to excellence and sustainable growth. He thanked the PSX, SECP, CDC, and consultants for their support in achieving this milestone.

CEO of AKD Securities Ltd Muhammad Farid Alam lauded the robust investor confidence in Fast Cables, underscored by the successful oversubscription. He highlighted the growing interest in Pakistan’s manufacturing sector and reaffirmed AKD Securities’ commitment to supporting reputable companies in their market journey.

The gong ceremony concluded with the distribution of commemorative tombstones to representatives from participating banks, CTI, and other key contributors.