Lalpir Power is the first IPO of 2013 in the booming Pakistan market, said market observers on Wednesday.
“Lalpir six times subscribed, strike price Rs 22,” said Mohammad Sohail, CEO of Topline Securities and an equity analyst.
The sponsors of the company offered 10% of total paid up capital or 37.9 million shares for sale through book-building and traditional methods and 5% by green shoe option, they added.
Out of 37.9 million shares, 28.5 million were offered to institutional and high net worth individual investors in book building which was held on June 18 and 19.
“In the book building process Lalpir Power was oversubscribed by 6.0 times,” said Asad I Siddiqui, an analyst at Topline Research.
For 28.5 million shares, bids of 169.4 million were received, strike price was settled at Rs 22, he said.
With strike price of Rs 22, Lalpir Power was offered at trailing PE of 5.8 (FY12 EPS Rs 3.8) and trailing DY of 12% (FY12 DPS of Rs 2.7).
“Lalpir’s offer for sale will translate into gains for NML and AICL,” said Siddiqui.
The impact, he said, will be positive Rs 0.24 per share for NML and Rs 0.21 per share for AICL. He further said if green shoe option in public offer (likely in July) is exercised, the impact on NML will be positive Rs 0.36 per share and Rs 0.31 per share on AICL.
