Chinese Cell Phone Assembler To Go Public With ‘Biggest IPO’ Ever
ISLAMABAD: Lahore-based Air Link Communications, which brings together Chinese smartphone brands Itel, Tecno, TCL and Alcatel, plans to raise more than Rs 6 billion in capital through an initial public offering (IPO), according to the company’s prospectus ’emission.
According to Gwadar Pro, Air Link also distributes iPhone, Samsung, Huawei and Xiaomi phones in Pakistan. JS Global Capital is the bookrunner of the IPO. In a social media announcement over the weekend, JS Global CEO Kamran Nasir said it would be Pakistan’s largest IPO ever. In 2019, Faisalabad-based textiles maker Interloop Ltd. raised Rs 5.025 billion through the IPO.
Air Link is offering 90 million shares, which will constitute 25% of the total post-IPO paid-up capital, at a floor price of Rs65, with a price range of 40% above the floor price, according to the prospectus. The IPO could value the company at around Rs25 billion, according to analysts.
Book Building at the IPO will take place on August 30 and 31, during which investors will be able to subscribe for 75% of the shares.
The remaining shares will then be offered to retail investors on September 6 and 7, according to the prospectus.
Air Link has installed 8 assembly lines at its Lahore plant with a production capacity of 500,000 to 800,000 smartphones and cellphones per month, according to details on the company’s official website.
The facility employed more than 1,000 engineers and skilled workers. The company also plans to embark on manufacturing and exporting Chinese cell phone brands, Muzaffar Paracha, CEO of Air Link, said in a video on the company’s website. In April of this year, the major shoe exporter Service Global Footwear Ltd., raised 2 rupees. 175 billion via an IPO to finance its joint venture with the Chinese Long March Tires. The IPO was 5.8 times oversubscribed.