KARACHI: Supernet Ltd, an information technology (IT) company wholly owned by TeleCard Ltd, said on Thursday it’s looking to raise at least Rs475 million by offering its 18.81 per cent post-listing shareholding through the stock market.

It’s going to be the first IT company to list on the Growth Enterprise Market (GEM) counter, which is a trading platform within the Pakistan Stock Exchange dedicated to growing companies that are smaller and riskier than the ones listed on its main board.

The issue consists of 21.1m ordinary shares with a face value of Rs10 each. Only institutional investors and high net worth individuals will be allowed to take part in the book-building process that’ll take place on April 12-13 at the floor price of Rs22.50 per share. However, the strike price will be determined in line with the interest shown by investors. They can offer to buy shares at any rate between the floor price of Rs22.50 and Rs31.50, which is the upper limit set by the regulator.

Of the 18.81pc post-listing stake on offer, 10.89pc represents fresh equity that the company will use for the purchase of fixed assets, investment in subsidiaries and working capital.

The rest of the transaction — 7.92pc of the post-listing shareholding — constitutes the offer for sale, which means the sponsor will receive the proceeds for diluting its own stake in the company.

Speaking to Dawn, Supernet Ltd Chief Financial Officer Mohsin Ishaq Modi said the company is rapidly growing its business in telecommunication, cyber security and infrastructure solutions.

“Our revenue in 2020-21 was Rs2.4 billion, which was double the unconsolidated revenue of TeleCard Ltd in the same year,” he said while referring to the parent company of Supernet Ltd.

At the floor price, the share is being offered at a price-to-earnings multiple of 6.7, which is substantially lower than the average IT sector multiple of 22, Mr Modi said. Its profit jumped 6.8 times on an annual basis to Rs233.4m in the last fiscal year.

Companies belonging to the IT sector have seen major activity on the stock exchange in recent years. A rese­arch report by Arif Habib Ltd showed profits of listed technology firms rose 47pc in 2021 on a year-on-year basis. The ICT corporate market in Pakistan is estimated to be worth anywhere between $500m and $750m a year.

Published in Dawn, April 1st, 2022

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