KARACHI – After a long gap of 12 months, the first public offering of 2011 of value-added steel firm, International Steels (ISL), will come to the Karachi Stock Exchange (KSE) this month, the market sources said. At least 61.9 million shares that constitute 14 percent of the capital of ISL would be offered through book building between April 12 and 14 to the institutions and high-net worth individuals at a floor price of Rs 12.9. While some 20.6 million shares (4.7 percent of capital) are allocated for pre IPO foreign investors and 27.5 million (6.3 percent of capital) would be given to general public later at the strike price, sources said.
“The 250,000 tonne state of the art Rs 8.7 billion steel complex is the first of its kind in Pakistan, which is envisioned to sell 100,000 tonnes of CRC (Colled Rolled Coils) and 150,000 tonnes of HDGC (Hot Dipped Galvanized Coils) to the supply deficit domestic market,” said Farhan Mahmood of Topline Reseacrh. With one of the lowest per capita steel consumption of 12 kilogrammes compared to a regional average of 190, the Pakistan steel market possesses huge potential, he added.
Moreover, the analyst noted that the prevalent estimated supply shortfall of 400,000 and 300,000 tonnes of CRC and HDGC respectively acts as assured demand for company’s product despite 220,000 tonnes in additional capacity likely to be gained by Ayesha Steels in the next few years.
