Hi-Tech to hold IPO from Jan 25

LAHORE: The general public offer for the ongoing initial public offering (IPO) of Hi-Tech Lubricants Limited would take place from January 25 to 27. At this stage, 7.25 million shares of the company would be offered at a price of Rs62.50 per share.

With the completion of the second round of fund raising for the IPO of the company, Hi-Tech Lubricants would become the first ever company to be listed on the recently integrated Pakistan Stock Exchange (PSX). Hi-Tech Lubricants Limited would also become the first IPO for the year 2016.

Earlier on January 7, 2016, the book building portion of the company was over-subscribed by 2.24 times by the high net worth individuals and corporates body, when due to a very high demand in the market, the share price of the company got a strike price of Rs62.50 per share against the offered price of Rs37 per share.

For the IPO of the company, Hi-Tech Lubricants had decided to offer a total of 29 million shares in the market. The company was expected to accumulate a sum of Rs1.8 billion from the market after the completion of its IPO process.

Hassan Tahir, the CEO of the company showed confidence, and said that similar to the over-subscription of the shares during the book building process, the general public offering too would be over-subscribed.

He said it was heartening to witness the demand frenzy for the company’s shares in the market, which was a reflection of the investors’ confidence in the company’s business plan as well as other major sponsors and the management of the company. He said that being a lube business oriented company, Hi-Tech was already the first of its kind company to be listed on the market, and some analysts were using Hi-Tech’s valuations to draw parallels to the potential valuations of the lube segment businesses of other Oil Marketing Companies in Pakistan. 

It may be mentioned that Hi-Tech Lubricants enjoys 13.6 percent market share in passenger car motor oil segment and an overall 5.5 percent share of the total machine lubricant market in Pakistan. HTLL holds a solid market positioning and a widespread distribution network of 150+ distributors across Pakistan.