Monday, June 17, 2024

Panther Tyres Ltd. becomes Pakistan’s 3rd Tyre Company to go Public

Panther Tyres Limited has applied to be registered on the Pakistan Stock Exchange (PSX).

The company intended to issue 40 million regular shares using the 100 percent Book Building Method at a price of Rs.47 per share, according to the notification provided by the PSX. 40 million regular shares of face value worth Rs.10 each are included in the issue.

Thirty million regular shares (21.42 percent of the total post-IPO paid-up capital) are issued by Panther Tyres Limited, and ten million (7.14 percent of the total post-IPO paid-up capital) are provided by Mian Iftikhar Ahmed, the sponsor of Panther Tyres Limited.

Firstly, active bidders will be allocated 75 percent of the issue size (30 million ordinary shares) and 25 percent of the issue (10 million ordinary shares) will be provided to retail investors. Unsubscribed shares, if any of the general subscription portion, will be distributed on a pro-rata basis to the active and effective bidders of the Book Building portion.

The company decided to raise funds for the growth of the local market and export divisions of its operations and businesses. The overall cost of expansion was projected at Rs. 3,066 billion and was to be funded by a 37.5 to 62.5 mixture of debt and equity in the Debt to Equity ratio.

Panther Tyres Limited was the first company to introduce local two and three-wheeler tyre manufacturing in Pakistan and currently has a foothold in the two and three-wheeler tyre industry. The company has spread to other parts of the automotive industry over time, including tractor tyres, light commercial vehicles, trucks, buses, and earthmovers.

For both, the Original Equipment Manufacturer (OEM) and replacement markets, the firm claimed to be a market leader in motorcycle tyres in Pakistan. As a result of standard certification, Panther tyres are exported to Asian, Middle Eastern, African, and European markets regularly.

Through its 500 direct business partners, the company caters to the replacement market in the capacity of suppliers and dealers, and 40,000 indirect business partners.

The contribution of revenue from the replacement sector to the company’s overall sales is 75 percent. The development of the replacement market depends on the growth of the number of registered vehicles, including the importation of CBUs and the selling of used vehicles. The vehicles became part of the replacement market following sales from the OEM, thus growing their size every year.

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