Karachi: Select Technologies Limited, a subsidiary of Air Link Communication Limited, has announced plans to raise PKR 2.489 billion through an Initial Public Offering (IPO) to bolster its local manufacturing capabilities for smart devices and consumer appliances in Pakistan. The IPO, approved by the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange Limited, involves offering 88,888,889 ordinary shares, which account for 10% of the company’s post-IPO paid-up capital.
According to Securities and Exchange Commission of Pakistan, the offering will utilize a book building method where 75% of the shares will be sold to eligible investors at a floor price of PKR 28.00 per share, with a cap price of PKR 42.00. The remaining 25% will be available to retail investors at a strike price determined through the book building process, and this portion will be fully underwritten. The registration for eligible investors is set to start on June 17, 2026, and the book building will occur on June 22 and 23, 2026, followed by the public subscription on July 2 and 3, 2026.
The IPO proceeds are intended to finance a new production facility at Sundar Green Special Economic Zone in Lahore for air conditioner manufacturing and assembly. Additional funds will support the expansion of the company’s TV production line, investment in smartphone production machinery, and working capital. Select Technologies, known for manufacturing and assembling products for brands like Xiaomi and Hisense, currently holds a significant share in Pakistan’s technology sector with 15.5% in smartphone assembling and 7.7% in total mobile devices production as of FY2025.
Post-expansion, the company aims to enhance its annual production capacity to 7 million smartphones, 360,000 televisions, and 400,000 air conditioner units. The facility at Sundar Green SEZ is expected to provide tax benefits, including income tax exemption until FY2035, which could improve margins and long-term shareholder value. Arif Habib Limited and Intermarket Securities Limited are acting as joint consultants for the issue.