Hi-Tech Lubricants Limited going public
Lahore, September 04, 2015 (PPI-OT): In an order to become a publically listed company, Hi-Tech Lubricants Limited (HTLL) has furnished a prospectus for listing on the premier bourse of Pakistan for the issuance of about 29 million shares by mid of September 2015.
According to the company’s CEO, Mr. Hassan Tahir, on the basis of approved prospectus by the regulatory authority, the company’s public listing shall be done in two phases-1st the book building phase for Financial Institutions, Mutual Funds and High net-worth individuals, 2nd phase for the general public.
For the book building, the company shall offer 21.75 million shares and for general public, the company shall offer 7.25 million shares. The public offering constitutes of 25% post IPO share capital of the company. The company estimate’s to raise PKR 1,595million at an expected price of PKR 55 per share from the Initial public offering (IPO) process.
HTLL has been in the import and sale of synthetic Lubricants since 1997. During the last three years, the company’s market share has increased significantly and overall market share is 7% with around 16% in passenger car motor oil (PCMO) segment with future forecast to lead the competition is quite promising.
One of the many reasons to achieve such a phenomenal growth trend has been the product quality and import of finished lubricants from the principal i-e SK Lubricants of South Korea, having one of the world’s largest petrochemical complex with a market share of over 50% in synthetic lube base oil.
The proceeds of the IPO will be utilized to develop a unique service delivery that will transform the concept of retail business in the automotive sector. This will enhance the capability of HTLL to further penetrate in to the retail segment and increase its market share. Under this expansion HTLL plans to offer state of the art retail outlets across Pakistan with multitude of unique services and technical support for their customers.
Retail outlets with the hall mark of “Innovation at its best” will expand the business opportunities for beginners as well as mature investors. The wide range of franchise options based on area, capacity, product range and service delivery will make the investors to choose with flexibility. This business expansion plan is the part of our forward integration strategy. Further, proceeds raised will be invested in a 100% wholly owned subsidiary named Hi-Tech Blending (Pvt.) Limited towards installation of additional filling lines at the Blending Plant.
Hi-Tech Lubricants Limited is the leading lubricant marketing company of Pakistan, which boasts a sizeable market share in almost all the related market segments of the country. Hi-Tech’s product portfolio, under the brand name of “ZIC”, includes a wide range of specialty lubricants in automotive, industrial and marine segments, which are imported from SK Lubricants Ltd., South Korea, ensuring highest quality and maximum protection against engine and machine wear.
For more information, contact:
Barkat Ali Anjum
Deputy Manager-Media and Public Relations Department
Lahore Stock Exchange (LSE)
Lahore Stock Exchange Building,
19, Khayaban-e-Aiwan-e-Iqbal, P. O. Box: 1315,
Lahore – 54000, Pakistan