Secure Logistics Makes History: First Pakistan Logistics IPO

ISLAMABAD: In response to a boom in the Pakistani stock market, Secure Logistics Group Ltd. is reportedly attempting to raise at least Rs750 million ($2.7 million) through an IPO. This information was published by Bloomberg.

The chief executive of Arif Habib Ltd., the only financial adviser and bookrunner on the transaction, Shahid Ali Habib, stated that the Islamabad-based company intends to sell roughly 63 million shares in the first quarter of this year. He stated that paying down the company's debt will be the main use of the proceeds.

Secure Logistics would become Pakistan's first listed logistics company upon completion of the share offering. Asia's top-performing market is the national benchmark KSE-100 index, which has surged by about 50% in the last six months following the government's acquisition of an IMF bailout to prevent a default.

A potential default by the nation caused investors to fear that Pakistan's IPO market would virtually collapse last year. Only one business went public in 2023, raising around $1.6 million, according to Bloomberg data.

In Pakistan, where benchmark interest rates are at an all-time high of 22 percent, corporations may find a more affordable alternative financing source through the resurrection of the IPO market. The nation's inflation increased for the second straight month in spite of hefty borrowing costs.

Habib claims that Secure Logistics owns 283 cargo vehicles in total. According to Habib, the company's sales would increase to 2.1 billion rupees in 2023 and then by another 28% in 2024.

According to its website, Secure Logistics was founded in 2011 and is supported by the Bugshan Group of Saudi Arabia and Karandaaz Pakistan. The government estimates that trucks and other commercial vehicles account for 95% of Pakistan's commodities transportation, which takes place on the country's road system.