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Fast Cables Eyes $11M IPO Amid Growth Surge

Fast Cables aims for a record 3 billion rupee IPO amid Pakistan's market surge, planning major capacity expansion.

By Bill Bullington

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5/5, 02:45 EDT
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Key Takeaway

  • Fast Cables Ltd. plans to raise at least 3 billion rupees ($11 million) in one of Pakistan's largest IPOs amid a market rally.
  • The IPO funds are aimed at increasing production capacity, with the company targeting to triple its revenue by 2030.
  • With an average annual growth rate of nearly 50% over the past five years, Fast Cables demonstrates strong growth and resilience in Pakistan's power sector.

Record IPO Amid Market Rally

Fast Cables Ltd., a leading power-cable manufacturer based in Lahore, Pakistan, is set to conduct one of the country's largest initial public offerings (IPOs) this month, aiming to raise at least 3 billion rupees ($11 million). This move comes as Pakistan's benchmark stock index experiences a significant rally, surging 74% over the past year and earning the title of the world's best-performing market in dollar terms. The company's decision to go public is influenced by the positive momentum in the stock market, buoyed by investor optimism following recent elections and progress in negotiations with the International Monetary Fund (IMF).

Strategic Expansion Plans

The funds raised from the IPO are earmarked for a substantial increase in production capacity. Fast Cables intends to issue 128 million shares at a floor price of 23.5 rupees per share during the book-building process scheduled for May 15 and 16, followed by a portion allocated for the general public. The company, which has a history of dividend payouts and is Shariah-compliant, plans to use the capital to expand its capacity by a third. This expansion is part of a broader strategy to triple its revenue to approximately 100 billion rupees by 2030, reinforcing its position in the power infrastructure sector and its resilience to economic downturns.

A History of Growth and Resilience

Founded in the 1980s by the family of Managing Director Kamal Mahmood Amjad Mian, Fast Cables has established itself as a key player in Pakistan's power infrastructure sector. The company has demonstrated remarkable growth, boasting an average annual growth rate of almost 50% over the past five years. Its strategic focus on this sector has not only provided stability but also enabled it to compete successfully against international firms, including winning a significant contract for a transmission line from a major coal mine and power project in the Thar desert.

Management Quotes

  • Kamal Mahmood Amjad Mian, Managing Director of Fast Cables:

    "At the macro level there is some stability now. The market has a long way to go."