LAHORE: Pakgen Power Limited held its investment roadshow to promote its upcoming Offer for Sale of shares to the general public at LSE which was attended by members, industry analysts & investors. Pakgen Power has applied for listing at both Lahore Stock Exchange & Karachi Stock Exchange, and has been approved by both the Exchanges.
The public subscription of the offered shares will be held on 14th & 15th June all across Pakistan. Senior management, advisors & other officials represented Pakgen, an associate company of one of the largest & most diversified business house Nishat Group and explained in detail the business operations and Offer’s description.
The IPO Roadshow was warmly welcomed by the investment fraternity who will have an opportunity to invest in the first public offering of shares after a gap of more than one year.
Mr. Aftab Ahmed Ch., M.D., LSE while speaking on the occasion expressed hopes that the coming year will see a lot more flourishing IPO market. He said that this roadshow will hopefully provide investors with an opportunity to evaluate the company and make a more informed investment decision. He also reiterated LSE’s commitment to take such initiatives in the future to improve information parity in the market place.
Introducing the company, Mr. Shahid Khan, CEO of Pakgen said that the company is in the business of operating a Fuel Fired Thermal Power Plant with a net generation capacity of 337MW sold the WAPDA. The plant which is located in Muzaffargarh, Punjab started commercial operations in 1998 and has an impressive dividend payout record over a very long period. The company was acquired in 2010 by a consortium and now Nishat Group holds around 50% and Stanhope Investments of Abu Dhabi holds around 30% of Pakgen’s shares.
Mr. Shahid Khan also apprised the participants on the strategic location of the plant, security arrangements and Corporate Social Responsibility (CSR) initiatives of the Company. Answering a question about the damage to the plant during the floods, he informed that not only that the rehabilitation efforts were completed in a record time but also the financial loss to the company has been recovered insurance claims and to safeguard against such future threat a 20 feet high concrete wall has been constructed around the plant.
In reply to another query he informed that the company is constantly on the lookout for opportunities to increase plant efficiencies and has recently made a 1 million USD investment in a cooling tower project which is expected to result in huge savings to the company.
Mr. Bilal Moti, CEO of Arif Habib Limited while introducing the offer informed that the current offer of 37 million shares at PKR 19 per share is out of existing shareholdings of the company representing 10% of the total capital. Answering queries regarding justification of the premium being charged he claimed that the company is financially much more secure and has a higher dividend yield than its competitors. He commented that as per the valuation carried out, the value per share comes out to be around PKR 24 and hence is being offered at an attractive discount of 22% to the public.