Lahore, March 02, 2015 (PPI-OT): The journey towards listing on the domestic market for Mughal Iron and Steel Industries Limited (MISIL) started with a rousing response from the institutional and high net worth individuals with a total bidding amount of Rs 2.3 billion more than three times what the company expected to rise. Mughal Steel is one of the leading industries of Pakistan in the steel and iron sector.
The strong interest from the investors can be gauged from the fact that the entire block of 20.512 million shares offered for book building was picked up by the investors, bidding at the top end of the price range, i.e @Rs 34/- per share, within a matter of minutes of starting the electronic book-building process. Long queue of eager investors could be seen at the offices of the AKD Securities, the book runner of MISIL, in Karachi, Lahore and Islamabad Stock Exchanges, hours before the commencement of the bids at the market opening time.
The scenes of the book building process were nothing short of the actual ‘gold rush,’ where the keen investors wanted to bid for the company’s stock and hoped to gain from the future price hike in the MISIL’s stock. But, as in every book building process, only a handful of investors emerged successful in getting the shares during the book building process.
The book building process was undertaken under the presence of the representatives of the Stock Exchanges to ensure that the process was completed seamlessly. The book-building bidding window was universally made available on KSE’s web site to ensure that live data was available for viewing to all and sundry in the market.
The management of Mughal Steel has expressed its gratitude to all stakeholders; including the SECP, the stock exchanges and the investors who all contributed in making the public listing process of the Company as successful. CEO of Mughal Steel, Mr. Khurram Mughal shared that with the successful book building, MISIL has taken a step further to implement its vision for the future growth of the Company’s business as the capital raised from the investors would play a key role in expanding the business of the Company.
He said that with the listing of MISIL, the Company is poised to adopt a new motto of creating long term value for its shareholders, and the Board and the management of the company would do everything to continue to reward our new shareholders, who have reposed abundant confidence in the Company’s capabilities.
In the next stage of the IPO Process, MISIL shall offer the remaining 6.837 million shares to the general public through a public offering likely to take place by mid-March. It may be mentioned that under the IPO prospectus, the funds from the general public would be spent on the expansion of “Direct Rolling” production for the tandem section mill acquired in 2013 with an annual capacity of 300,000 M/T. The Company envisages that the up-gradation/BMR of the existing Re-rolling mill will result in 30% increased production and will facilitate growth in the profit margins through reduced manufacturing costs.
For more information, contact:
Barkat Ali Anjum
Deputy Manager-Media and Public Relations Department
Lahore Stock Exchange (LSE)
Lahore Stock Exchange Building,
19, Khayaban-e-Aiwan-e-Iqbal, P. O. Box: 1315,
Lahore – 54000, Pakistan