Select Technologies Limited, Pakistan’s first standalone mobile and smart devices assembler and the local manufacturing partner for Xiaomi and Hisense, has opened its book-building process on the Pakistan Stock Exchange on June 22, 2026, with a floor price of Rs 28 per share and a price band extending to Rs 42. The two-day book-building window closes June 23, with the company seeking to raise approximately Rs 2.46 billion at the floor price through a 10 percent free float public offering. The company is backed by Airlink Communication as its pre-IPO sponsor, which retains roughly 90 percent of the company post-listing, with no secondary share sale by existing shareholders.
Select Technologies holds a partnership with Xiaomi dating back to 2021, making it the primary local assembler for the world’s third-largest smartphone brand by global market share. A newer manufacturing agreement with Hisense, the world’s third-largest television brand, adds a second global principal to the company’s relationship base. The company also plans to add air conditioner assembly to its product lineup. The move to the Sundar Green Special Economic Zone brings a full decade of tax exemption through FY2035, a structural fiscal advantage that management describes as a strategic necessity given the existing facility’s space and infrastructure constraints. Post-Sundar SEZ, combined production capacity rises to 7 million smartphones, 360,000 smart televisions, and 400,000 air conditioner units annually, compared to the current 3.5 million smartphone capacity running at 58 percent utilisation.
The financial picture presents a mixed picture for prospective investors. Gross margins have improved substantially from 5 percent in FY2024 to 16 percent in the nine months through March 2026, and net margin has risen from 2 percent to 6 percent over the same period. However, revenue has been volatile, surging from Rs 15.4 billion in FY2023 to Rs 73.5 billion in FY2024 before falling to Rs 48.9 billion in FY2025, with 9MFY2026 annualising to roughly Rs 31 billion. The FY2024 spike was driven by a release of pent-up demand following import restrictions rather than organic growth. Operating cash flow has been negative in two of the last three years despite reported profits, with the company relying on short-term borrowings and parent company credit support from Airlink to fund its working capital cycle. Of the Rs 2.46 billion raised at floor price, 43 percent is earmarked for working capital rather than new capacity, with the balance split across air conditioner, smartphone, and television machinery.
A key concern for investors is customer concentration, with Xiaomi accounting for between 94 and 100 percent of revenue across all reported periods. The prospectus discloses no minimum offtake commitments or volume guarantees from Xiaomi, leaving Select Technologies’ revenue entirely dependent on order timing decisions made by a single principal. A related entity, Zexo Technologies, was incorporated by parent Airlink in December 2025 with a mandate covering the same product categories as Select Technologies, and the company’s own chairman sits on Zexo’s board, a potential conflict of interest that the prospectus does not address with specific contractual safeguards. The joint consultants’ discounted cash flow model yields a fair value of Rs 46.75 per share against the Rs 28 floor price, but roughly 73 percent of that enterprise value derives from terminal value assumptions extending to FY2031, making the implied upside heavily dependent on long-term execution assumptions that are not yet visible in the company’s current financial performance.
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