Islamabad-based Secure Logistics Group Limited is set to launch its initial public offering (IPO) next week, aiming to raise Rs. 600 million ($2.1 million) from public investors in what marks the first logistics IPO on the main bourse. The IPO will offer 50 million shares at a floor price of Rs. 12 each through a book-building process scheduled for March 27 and 28.
The funds raised from the IPO will be allocated towards debt reduction and expanding the logistics business, with a particular focus on seizing opportunities arising from the China-Pakistan Economic Corridor (CPEC). Following the IPO, strategic investor Saudi Bugshan Group’s share in SLG will increase from 13.6 percent to 17 percent. Management anticipates substantial growth in road transportation under the CPEC in the coming years.
SLG has already secured Rs. 585 million ($2 million) in funding from Saudi Bugshan Group and Karandaaz Pakistan. The public offering provides investors access to a discounted book value of the company.
With a fleet of 283 transport vehicles, Secure Logistics Group Limited anticipates a revenue increase of 28 percent in 2024. The IPO launch comes amid a sluggish IPO market in Pakistan last year, with only one business going public and raising approximately $1.6 million amid investor concerns over economic stability.
