The Pakistan Stock Exchange (PSX) is buzzing with anticipation as the first business of fiscal year 2024 is poised to join its main list next month.
Summetry Group, a dynamic technology firm, has announced plans to raise Rs430.27 million in minimum equity by offering 101.24 million shares to institutional and private investors.
The offering would be conducted through a 100% book-building method – Dutch auction – at a minimum price of Rs4.25 per share, with a floor price of Rs4.25 per share. During the auction, the share price can rise by up to 40% to Rs5.95 per share, allowing investors to discover the optimum strike price.
Topline Securities, the issue’s lead manager, emphasized that Summetry Group has transformed from a marketing firm to a tech powerhouse.
The funds raised will be used to develop new intellectual properties (IPs) using in-house expertise, to build new office space, to purchase new equipment, to hire extra talent, and to market the planned intellectual property.
The book-building process is intended to attract investors from a variety of backgrounds. Bidders will be able to submit bids for 100% of the issue size, with successful bidders (institutional and high net worth individual investors) receiving 75% of the issue size, or 75.93 million shares, in the first round.
Retail investors will be offered the remaining 25% (25.31 million shares). If the retail portion remains unsubscribed, the unsubscribed shares will be distributed on a pro-rata basis to successful book-building bidders.
Despite obstacles, Symmetry Group’s net consolidated profit increased to Rs71.29 million in the fiscal year ending June 30, 2022, from Rs57.48 million in the previous fiscal year (FY21).
However, the company said that income from two key clients, HBL and Procter & Gamble, fell significantly in FY22 compared to FY21. Future profitability may suffer if these patterns persist and the company fails to produce new revenue from existing business lines and Ips, according to the company.