IPO presentation for Engro Fertilizer

LAHORE: Engro Fertilizer Limited after successful book building process conducted the IPO (Initial Public Offering) Presentation attended by the TREC (Trading Right Entitlement Certificate) holders, investors and other participants at Lahore Stock Exchange on Monday.
Delivering the presentation, the EFL Head Section-Planning, Shujaat Bhatti highlighted various features of the Company in relation to its conduct of business and financials. He said the company was going to offer 18.75 million ordinary shares to general public through IPO to be held on December 16-17, 2013 at strike price of Rs 28.25 as determined in book-building successfully exercised for 56.25 million shares.
He said the EFL was a leading urea producer in Pakistan and it was primarily in the business of manufacturing and marketing of urea and NPK (compound) fertilizers. With the establishment of 1.3 metric tonnes state of the art fertilizer complex in 2011, the Company's annual urea production capacity stands at 2.3 MT representing
33 percent of the entire production of the country.
Besides restructuring the balance sheet to optimize capital structure of the company, he said, the funds raised through the IPO would also be utilized to fund the development capex for allocating additional gas supplies.
While, chairing the event, the LSE Director Asif Baig Mirza appreciated the company and the investors that build confidence on the Exchange by experiencing the demand and supply in the capital markets through such events.
It may be mentioned that Engro Fertilizers Limited is a wholly subsidiary of Engro Corporation primarily making Urea based on two plants with annual production capacity of 203MT. The Company was incorporated as an independent entity, as a result of demerger of fertilizer operations from Engro Corporation Limited (previously called Engro Chemical Pakistan Limited) on January 1, 2010. The de-merger resulted in the transfer of all fertilizer assets and liabilities to the Company with its current status as a wholly owned subsidiary of Engro Corporation Limited.
On this occasion, the LSE Managing Director Aftab Chaudhry also hailed the EFL management for considering the listing for multiple benefits and enhancing company's brand exposure both locally and globally. In addition to raising capital, he said, listing had numerous benefits that added on to the overall wealth creation of the company, its employees and subsequently to the economy on the whole. -APP