Secure Logistics Group Limited (SLG) has applied to be listed on the Pakistan Stock Exchange (PSX) to generate equity of Rs. 1.5 billion for growth of its operations in its operational sector.
The firm will issue 55,555,556 Ordinary Shares (constituting a New Issue of 38,280,066 ordinary shares and an offer for the sale of 17,275,490 ordinary shares) utilizing the 100 percent Book Building Method at a Floor Price of PKR 27 per share.
The IPO revenues will primarily be used for a comprehensive expansion plan focusing on the logistic company. A portion of the monies acquired through the IPO will also be utilized for the partial de-leveraging of the Balance Sheet.
The anticipated deployment of IPO proceeds will support the expansion of SLG into a Third Party Logistics (3PL) company with the capacity to deliver a full range of factories to wholesaler logistic services. The equity funds to be raised will be committed to the addition of operating assets, efficiencies/enhancement efforts, and the launch of new business sectors.
For the aforesaid issuance, Arif Habib Limited is the lead manager and book-runner while Habib Bank Limited is the banker to the book building component of the Issue.
The proposed expansion will allow the company’s fleet size to rise from 158 trucks to 160 trucks in Long-haul, 62 vehicles to 135 vehicles in Distribution, 15 vehicles to 25 vehicles in CIT, along with 40 containers and two warehouses to be added to the non-current assets of the firm. Apart from this, investments will be made on the B2B marketplace platform and the up-gradation of IT infrastructure.
The corporation is largely involved in the logistics business, encompassing long-haul and distribution (short-to-medium haul) segments covering the transportation of commodities across the country. The present long-haul segment includes bulk (coal, cement, fertilizer, etc.) and containerized cargos (food, appliances, textile, packaging material, etc). (food, appliances, textile, packaging material, etc.). The distribution section covers containerized cargos (food, industrial products, appliances, packaging material, etc.) and drinks.
The business is also involved in Assets Tracking services, which include advanced fleet management, container tracking, fuel management systems, and cold chain management. SLG is also in the business of providing security services through its wholly-owned subsidiary company that provides fixed guarding, close protection, cash-in-transit, and supplies electronic and mechanical security equipment.
Previously called Asia Capital Partners (Pvt.) Ltd. until 2016, Secure Logistics Group Limited was founded in 2013 and operated as the holding company for four wholly-owned operational entities:
SecurLog (Pvt.) Ltd.
SecureTrack (Pvt.) Ltd.
Fist Security (Pvt.) Ltd. (‘FIST’ or the ‘Subsidiary’)
TDM (Pvt.) Ltd.
The operating entities were involved in logistics, vehicle fleet management, security services, and commodities trading/indenting sectors, respectively.
Initially, 75 percent of the issue size or 41,666,667 Ordinary Shares will be allotted to Successful Bidders and 25 percent of the Issue or 13,888,889 Ordinary Shares will be sold to Retail Investors at the Strike Price. Any unsubscribed retail component will be awarded to Successful Bidders on a pro-rata basis.