Country’s biggest IPO launched: JS Global becomes Airlink consultant

KARACHI: JS Global, as a consultant and book runner, has succeeded in bringing the largest-ever IPO to Pakistan worth Rs6 billion, reported Geo News. Airlink Communications Limited, the largest distributor of smartphones in Pakistan, is the largest IPO in Pakistan on PSX.

Airlink, under the new manufacturing mobile policy, is developing smartphones for Trans Group China. Airlink has also set up state-of-the-art retail stores in Pakistan, making it the sole distributor of international smartphone brands in Pakistan. These include Samsung, Apple, Huawei, Xiaomi, Itel, Techno, TCL and Alcatel. Importantly, the government has given huge concessions in duties and taxes for the manufacture and export of smartphones. Duties/taxes on SKD imports on smartphone assemblies in Pakistan have been reduced to zero. Earlier, duties ranged from 20 to 25 percent.

The world's largest manufacturers will assemble smartphones in Pakistan. It should be noted that the sales of Airlink in Pakistan have increased from Rs140 million in 2012 to Rs47 billion in 2021.

Smartphones will now be a necessity for everyone in Pakistan. Airlink has approached with a minimum capital of Rs5.88 billion for listing on the Pakistan Stock Exchange. The company wants to raise capital with 60 million new shares. The price is Rs65 per share.

To a question, CEO Muzaffar Hayat Paracha said that Airlink was established in 2010 in Lahore. Together with his brother Moazzam Hayat Paracha, he started PTCL's device "Evo" and started distributing smart tablets. Then the journey went on successfully. Muzaffar Hayat Paracha said that the sales volume from July to December 2021 was 40pc as Samsung and Xiaomi have announced to set up a plant in Pakistan.

To a question, he said that unfortunately people comment without knowing anything. Our strength in distribution is its network. Airlink's lifeline is a network of 1,000 dealers, 4,000 retailers and more than 300 cities and towns across the country.

Kamran Nasir, CEO of JS Global, said that there will be a one-stop shop from where all the required requirements will be provided and met. He said that road shows were conducted in the UK and US, Europe and the Middle East in association with Airlink. Kamran Nasir said that the step taken by the government was showing positive results today. He said that earlier they used to import $3 billion worth of phones and there was a lot of pressure on the import bill. “Now we have brought international brands to Pakistan. After meeting the demand of the local market, the phones will be exported from here to the outside world,” he added. He further said that Airlink is the largest distributor of smartphones in Pakistan. International smartphone brands have set up their factories here. Manufacturing for 30pc of the total market will now be from here.

Airlink has also exported a small shipment. Labour is also cheaper in Pakistan, so other markets besides the Middle East and African markets will also be covered by Pakistan. He said at present 18pc of the population of Pakistan has a smartphone, 82pc of the people are using normal phones, which will come on smartphones in the future and we have a huge opportunity. He said that Airlink has started the concept of walk-in stores for cell phones in Pakistan as well as in Europe. He said now families will come here to see the technologies of mobile phones in front of them, in this way the customer will be satisfied and we will also get support. About 250 million dollars have been invested so far, although this has not happened in the last eight years. We have a great start. He said that Rs6 billion IPO has not come in the private sector to-date. Therefore, there is a rare opportunity for investors to take advantage.

Note from editor: As a general rule, you should only trade in financial products that you are familiar with and understand the risk associated with them. The risk warning described in each prospectus should be read carefully and advice from professionals should be followed.