Karachi (Muhammad Yasir) Agha Steel Industries’ general public subscription of the 30 million shares (25% of the total offer size) will begin on 14th October (today) and conclude on 15th October at the price of Rs32.
The book-building phase of the Initial Public Offer (IPO) of Agha Steel concluded last week which was oversubscribed 1.63 times. Institutional investors and high net worth individuals bought 90 million shares of Agha Steel in the book building 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.
Agha Steel Industries raised Rs 3.8 billion in total, making it the largest IPO in the steel sector and the second-largest IPO in the private sector.
Brokers and investment advisory firms had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs4.4 billion against the IPO’s book-building size of Rs2.7 billion.
The company will use IPO proceeds to finance the expansion of its re-rolling capacity from 250,000 metric tons to 650,000 MT. It will increase the reinforcing bar production capacity by 160 per cent.