Secure Logistics plans Pakistan’s first logistics IPO

ISLAMABAD: Secure Logistics Group Ltd. is seeking an initial public offering in Pakistan that could raise at least Rs750 million ($2.7 million) following a surge in the country’s stock market, Bloomberg reported.

The Islamabad-based company plans to sell about 63 million shares in the first quarter of this year, according to Shahid Ali Habib, chief executive of Arif Habib Ltd., the sole financial adviser and bookrunner on the deal. The proceeds will be used primarily to reduce the company’s debt, he said.

Once the share sale is completed, Secure Logistics will be Pakistan’s first listed logistics company. The national benchmark KSE-100 index has risen around 50 percent in the past six months, making it Asia’s best-performing market, after the government secured a bailout from the International Monetary Fund to stave off a default.

Pakistan’s IPO market came to a near standstill last year as investors feared a possible default by the country. According to Bloomberg data, only one company went public, raising nearly $1.6 million in 2023.

A revival of the IPO market could provide a cheaper alternative financing channel for companies in Pakistan, where benchmark interest rates are at record 22 percent. Despite high borrowing costs, the country’s inflation accelerated for the second consecutive month in December.

According to Habib, Secure Logistics has a total of 283 transport vehicles. The company’s revenue is expected to rise to 2.1 billion rupees in 2023 and grow by another 28 percent in 2024, Habib said.

Secure Logistics has its roots in 2011 and counts Saudi Arabia’s Bugshan Group and Karandaaz Pakistan among its backers, according to its website. According to the government, about 95 percent of goods transport in Pakistan is carried out on the road network using trucks and other commercial vehicles.