Regal Automobiles Raising Rs. 800 Million Through PSX to Launch Electric Cars in Pakistan
Regal Automobiles Industries Limited has planned to get listed at Pakistan Stock Exchange (PSX) to generate funds of around Rs. 800 million for setting up set up an assembly line for the manufacturing of electric cars in Pakistan.
The company will float an Initial Public Offering of 25 million shares with a share price of Rs. 32, representing 23.3 percent of the total post-IPO paid-up capital having a face value of Rs. 10 per share.
Arif Habib Limited (AHL), Pakistan’s largest securities brokerage, investment banking, and research firm, has been appointed as Book Runner for this Issue.
Initially, 75 percent of the Issue Size, i.e., 18,750,000 ordinary shares, will be allotted to successful bidders, and 25 percent of the Issue size, i.e., 6,250,000 ordinary shares will be offered to Retail Investors at the Issue Price. Any unsubscribed retail portion will be allocated to successful bidders on a pro-rata basis.
The company will also be allocating the funds raised through the agreements signed under the Private Placement for the purpose of investment in the electric vehicle assembly line.
Regal Automobiles Industries Limited was established in 2016 as an automotive assembly under the ambit of the Automotive Development Policy of 2016-2021. Regal has seven variants in the overall product portfolio comprising of 800cc Hatchback, 1500cc and 1800cc Sports Utility Vehicles (SUVs), 1000cc Light Commercial Vehicles (LCVs), 1000cc Family Vans, and 1500cc Passenger Vans.