Service Global Footwear Ltd IPO Oversubscribed by 5.8 Times

Service Global Footwear Limited (SGFL) successfully raised Rs. 2.175 billion through a two-day book-building, which saw broad-based participation from institutional and high net-worth investors.

The book-building was oversubscribed by 5.8 times, with the price closing at Rs. 53.2 per share. The book-building saw a total demand of Rs. 8.946 billion received against the issue size of Rs. 1.554 billion.

Arif Habib Limited is the Lead Manager and Book Runner for this IPO.

Service Global Footwear is the largest footwear exporter out of Pakistan in the last decade, and in the last two years, it has accounted for over 40 percent of the total leather footwear exports of the country.

SGFL exports more than 95 percent of its total production. In the calendar year 2020, it exported footwear to more than 20 countries over 5 continents. The Company supplies footwear to global brands like Zara, Caprice, Diana Ferrari, Dockers, Jack & Jones, London Rebel, etc.

The IPO proceeds will be invested by the Company in Service Long March Tyres Ltd. (“SLM”), which is the first All Steel Radial Truck & Bus (TBR) Tyre manufacturing unit in Pakistan, being set up through a Joint-Venture between Servis Group and Chaoyang Long March of China.

The book-building saw participation from 454 investors, which included major commercial banks, insurance companies, local and foreign institutions, asset management companies, TREC holders, and high net worth individuals.

The general public will be offered shares on 12th and 13th April for Rs. 53.2 per share.

Source: Pro Pakistani