KARACHI: Agha Steel Industries’ general public subscription of 30 million shares (25 per cent of the total offered size) will begin today and conclude on October 15 at the price of Rs32.
The book-building phase of the Initial Public Offer (IPO) of the company which concluded last week was oversubscribed 1.63 times. Institutional investors and high net worth individuals bought 90 million shares in the process.
Agha Steel Industries’ IPO received an overwhelming response from institutional investors and high net worth individuals as the strike price clocked in at Rs32 per share, higher than the floor price of Rs30.
The company raised Rs3.8 billion in total, making it the largest IPO in the steel sector and the second-largest IPO in the private sector.
During a survey by Profit, 7 out of 10 brokerage terms issued calls to subscribe. This resulted in investor demand amounting to Rs4.4 bn against the IPO’s book-building size of Rs2.7 bn.
The company will use IPO proceeds to finance the expansion of its re-rolling capacity from 250,000 metric tonnes to 650,000 MT. It will increase the reinforcing bar production capacity by 160pc.