Secure Logistics Group Ltd’s Book Building Starts from March 27

Secure Logistics Group Ltd.’s IPO’s bookbuilding phase will be held on the March 27th and 28, where high net worth individuals and institutional investors will subscribe to 100% of the issue size (50 million shares). 

The book building will start at the floor price of Rs 12 per share. Based on the interest from investors during the book-building process, the strike price can rise by 40 percent to up to Rs 16.80 a share, thus helping the company to potentially raise Rs 840 million.

After the book-building process, successful bidders will be provisionally allotted 75 percent of the issue size (50 million shares). The remaining 25 percent shares will then be offered to retail investors at the strike price. SLG aims to raise a minimum of Rs 600 million by offering a 18 percent stake in the company to institutional and general investors.

SLG has also already secured pre-IPO equity of Rs585 million from existing strategic investors like Saudi Bugshan Group ( a large Saudi conglomerate) and Karandaaz Pakistan, an FDCO-backed development finance institution.

“Deleverage the balance sheet in an unprecedented high-interest rate environment, enhance company’s technology infrastructure base to complete ongoing tech pivot, and initiate expansion into regional markets” are the main goals of the equity capital raising.

The business has a strong history of using capital market transactions to accelerate corporate expansion. In 1Q CY19, the Rs 600 million convertible term finance issue was successfully closed, and in 1Q CY20, it raised an additional PKR 1.2 billion through an equity issue to Saudi Bugshan Group and Karandaaz Pakistan. The attractive trailing P/E of 5.39x, with a floor price of Rs12, has been set for SLG’s initial public offering.

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