Regal Automobile Industries Limited has applied for listing on Pakistan Stock Exchange (PSX), seeking to raise Rs 800 million to invest in the Electric Vehicle assembly line.
According to information, the company shall be issuing 25 million ordinary shares (23.3% of the total post-IPO paid-up capital) using the 100% book building method at a floor price of Rs 32 per share (including a premium of Rs 22.0/- per share) with a maximum price band of up to 40% i.e. Rs 44.8 per share. The principal purpose of the issue is to invest the entire amount raised at the floor price in the Electric Vehicle assembly line.
The bidders in the book building shall be allowed to place bids for 100% of the issue size and the strike price shall be the price at which 100% of the Issue is subscribed. However, the successful bidders shall be provisionally allotted only 75% of the issue size i.e. 18.75 million shares and the remaining 25% i.e. 6.25 million shares shall be offered to the retail investors through the general public portion.
In addition to this, the company has also signed agreements to sell 7.15 million ordinary shares (6.7% of the total post-IPO paid-up capital) at a price of Rs 35.2/share which is at a premium of 10% to the floor price through pre-IPO private placement. These funds will also be allocated to the EV assembly line. The document draft has been placed on the PSX website for seeking public comments.
Regal Automobiles Industries Ltd was incorporated as a Public Limited Company on 19th May 2016. The Company was formed to set up an automotive assembly plant under the ambit of the Automotive Development Policy 2016-2021. The company currently assembles DFSK Glory 580 & 580 Pro crossovers, K01 pickup and K07 minivan as well as Prince Pearl hatchback alongside C37 van as CBU.
Source: Mettis Global
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