APAG to raise around Rs2.6bn through offering: SECP approves IPO of APAG for listing on PSX

Business Recorder reported that the Securities and Exchange Commission of Pakistan has cleared an initial public offering for Agro Processors & Atmospheric Gases Limited (APAG), paving the way for a listing on the Pakistan Stock Exchange. The company plans to bring in close to Rs2.6 billion from the share sale. Of the total shares, three quarters will go to big institutional buyers and high-net-worth individuals, while the rest is open to retail investors.

The IPO covers 58.05 million ordinary shares, equal to 15% of the post-offering paid-up capital. The offer price range runs from a floor of Rs32 per share to an upper band of Rs44.80 per share. At the floor, the offer would raise Rs1.86 billion, while the upper limit could bring in up to Rs2.60 billion.

APAG manufactures edible oil, banaspati, industrial fats, margarine, condiments and sauces, refining soybean and canola among other vegetable oils. Capital spending on plant, machinery, warehousing and green-energy infrastructure is set to take about 75% of the money raised at the floor price. Roughly 10% is earmarked for working capital and the remaining 14% for marketing and distribution. Money raised beyond the floor price will be channelled into working capital.