Lalpir Power Limited’s IPO Oversubscribed by Six Times

June 20, 2013 Off By Web Desk

Karachi: The Initial Public Offering of Lalpir Power Limited, has been oversubscribed by Six Times as the offer drew substantial interest from investors and total bids for around 170 million shares were received during the book building portion against an offering of 28.488 million Ordinary shares. The strike price determined via Dutch Auction Method was rupees 22 per share against a set floor price of rupees 15 per share.

“Nishat Group appreciates and acknowledges the strong support by investors within Pakistan and foreign funds abroad who participated in the book building process of Lalpir Power Ltd IPO,” said by Mr. Ali Munir, Group Head Strategic Planning & Investment, MCB Bank Ltd.

“Oversubscription of Lalpir Power indicates tremendous investor confidence in Nishat Group which has a solid track record of paying regular dividends to shareholders of each of its companies and in its ability to meet stakeholder expectations,” he further added.

“Nishat Group has been a pioneer in power generation in the private sector of the country and with the generous support and visibility of investors, it is expected that the company will strengthen its books and earnings and will reflect a positive gain for other companies under the umbrella of Nishat Group”, said by Najam Ali, CEO, Next Capital.

Lalpir’s principal activity is to own, operate and maintain oil fired power station, with a gross generation capacity of 362 MW and net generation capacity of 350 MW. The company was established in 1994 as an Independent Power Producer IPP and commenced its operations in November 1997. The plant is located in Mehmood Kot, Muzaffargarh, Punjab, Pakistan.

Next Capital Limited and AKD Securities Limited “Financial Advisors & Arrangers” have been retained to provide financial advisory and arrangement services to Lalpir Power Limited for the proposed listing of LPL at the Karachi and Lahore Stock Exchange.