Pakistani lubricant supplier Hi-Tech Lubricants Ltd. raised 2.84 billion rupees (U.S. $27.1 million) last week in the first phase of its initial public stock offering on the Pakistan Stock Exchange.
The Lahore-based company has scheduled a second phase later this month and said it will use the funds to expand its packaging manufacturing capabilities and to establish retail outlets.
The board of directors and management would like to express immense gratitude to the institutions and investors for showing their trust and confidence in Hi-Tech Lubricants Ltd., the company said in a statement posted on its website following a private offering to high-worth investors.
Officials said the first phase raised 2.5 times as much funds as the goal that they had set. The offering did not appear to have been hurt by turmoil that shook stock markets last week, as Hi-Techs stock reached a price of Rs 62.5 per share, significantly above the floor price of Rs 37 per share.
Hi-Tech, which was founded in 2005, distributes finished lubricants in Pakistan for South Korean SK Lubricants. In 2014 it built a factory that manufactures lubricants and plastic bottles up to 10 liters. According to its prospectus for the offering, the company intends to use some of the proceeds to install equipment that can manufacture plastic cans and drums of up to 210 liters. This would improve the efficiencies of its imports from South Korea.
The rest of the proceeds would be used to help open a few dozen retail sites around the country. Some of those would be wholly owned, while others would be outlet.