KARACHI (February 07 2003) : The Initial Public Offering (IPO) of the term finance certificates (TFCs) of Gulistan Group of Companies (GGC) for total amount of Rs 1,000 million have been heavily oversubscribed, a press release issued by the UBL Thursday said.
The transaction involving separate TFC issues of Gulistan Textile Mills Limited, Gulshan Spinning Mills and Paramount Spinning Mills Ltd was advised and arranged by the United Bank Limited, which is also acting as the trustee to the TFC issues.
For Gulistan Textile Mills (GTML), against Rs 80 million offered to the investors in the IPO, the subscription exceeding Rs 510 million were received resulting in the issue being oversubscribed by 5.38 times.
For Gulshan Spinning Mills (GSML), against Rs 80 million offered to the investors in the IPO, subscription exceeding Rs 440 million were received resulting in the issue being oversubscribed by 4.51 times.
Same was the case with the Paramount Spinning Mills (PSML) which offered Rs 40 million for the investors in the IPO, the subscription exceeding Rs 312 million were received resulting in the issue being oversubscribed by 6.8 times.
For GTML and GSML, the TFC issue comprised of a pre-IPO of Rs 320 million and an IPO of Rs 80 million.
For GTML, over 20 entities participated in the pre-IPO and underwriting syndicate; for GSML, over 10 entities participated in the pre-IPO and underwriting syndicate, whereas for PSML, over 10 entities participated in the pre-IPO and underwriting syndicate.
The pre-IPO and underwriting syndicates for all the three issues had a diverse mix of commercial banks, investment banks, development financial institutions, leasing and investment companies and gratuity funds, etc.
The GTML, GSML TFCs have been assigned an Instrument Rating of 'A', whereas the PSML TFC has been assigned an Instrument Rating of 'A+' by the JCR-VIS Credit Rating Company.
“These TFC issues arranged by the UBL for GGC mark another landmark deal executed by the Investment Banking Group of the UBL.”
