ISLAMABAD: Pakistani consumer electronics producer Select Technologies said that its initial public offering (IPO) was oversubscribed 3.2 times on Tuesday, saying that the “strong demand” reflects investor confidence in the company.
Select Technologies Private Limited is a wholly owned subsidiary of Air Link Communication Limited, one of Pakistan’s largest manufacturers, distributors and retailers of smartphones, smart TVs and wearables. Select Technologies says on its website that it specializes in the local assembly and production of consumer electronics and smart devices.
The company said in a statement that its book-building process was fully subscribed at Rs34 per share, which was above the floor price of Rs28.
“The company offered 66.67 million ordinary shares, and the offering was oversubscribed by 3.2 times,” Select Technologies said.
“This strong demand reflects investor confidence in both Pakistan’s expanding smart devices and consumer electronics manufacturing sector and the company’s growth.”
The company said it plans to expand into higher-margin consumer technology and home appliance segments.
”The successful subscription of the book-building process is a vote of confidence in our strategy and our partnerships,” Muzzaffar Hayat Piracha, Group CEO of Air Link Communication Limited, said in a statement.
Shahid Ali Habib, CEO of Arif Habib Limited, noted that the book-building indicated “strong investor interest” in companies within high-growth sectors.
Selects said the IPO’s proceeds will support its expansion plans and reinforce its position in Pakistan’s consumer technology sector.
Pakistan’s securities regulator said on Tuesday that it had approved 14 IPOs in the outgoing fiscal year, reflecting Islamabad’s efforts to deepen its capital markets and attract more investors.
Pakistan has sought to encourage greater participation in its capital markets in recent years through regulatory reforms, digitalization initiatives and measures aimed at making it easier for companies to raise funds through public listings.
