Interloop target’s Pakistan’s largest-ever private sector IPO
The nation’s 7th largest exporter is keen to get listed on the Pakistan Stock Exchange
Web Desk: Formal listings and initial publish offerings [IPOs] in Pakistan are a rare sight these days, given the volatile capital market situation and the political uncertainty; many firms reviewed their decision of listing and postponed their formal listing plans.
However, given the recent devaluation of the rupee, which is expected to help exporters become more globally competitive, this seems the perfect time to seek a listing if you are a company like Interloop, the seventh largest exporter in Pakistan.
Interloop is a company that sells hosiery products to some of the world’s biggest brands and is seeking to raise at least Rs4.9 billion by listing 12.5% of its shares on the Pakistan Stock Exchange. Its client list includes major global athletic wear brands like Nike, Reebok, Adidas, and Puma, as well as other major clothing brands like H&M, Uniqlo, Target, and Levi’s. And the company has seen strong revenue and profitability growth in recent years, which its management claims is a testament to its culture.
market analysts are bullish on both the stock and the prospects of economic growth in the country. “This may be a good time [for an IPO] as market is expected to regain some of its past losses on the back of government’s resolve to address the country’s economic concerns. With Saudi Arabia already given a bailout, China is also expected to do the same coupled with entry into the IMF. With strong statement from the government for providing incentives for the export industry, it looks like a good time for Interloop to get listed,” said Saad Hashemy, chief economist and head of research at Topline Securities, in a note issued to clients ahead of the listing.
But is it enough to capture the attention of the individual and institutional investors? A lot depends on the stock market situation and the competitive textile industry.