Amreli Steel shares jump 5pc in KSE debut

KARACHI: Amreli Steel shares on Tuesday jumped a maximum of five percent in its public trading debut that drove the company's share prices to Rs53.55 after the chairman of the steel maker performed the opening bell ceremony at the Karachi Stock Exchange.
Chairman Amreli Steel Abbas Akberali said the principal purpose for raising the long term funding from the capital market is to expand the company’s steel melting capacity from 200,000 tons/annum to 350,000 tons/annum and re-rolling mills capacity from 180, 000 tons/annum to 480,000 tons/annum.
The company estimated the total cost of the current expansion is about Rs3.4 billion.
ASL had offered 74,252,857 ordinary shares, representing 25 percent of total post IPO paid up capital of the company with 55,502,857 ordinary shares through the Book Building process at a floor price of Rs 24/share and 18,750,000 ordinary shares for general public at the strike price determined via book building.
The company achieved strike price of Rs51/share through book building, thus raising a total of Rs3.787 billion from book building and public offer. “The expansion project is expected to be completed in less than two years,” Akberali said.