Airlink to Raise Rs 4.5 Billion Through IPO on PSX

Air Link Communications, the lead distributor of Apple, Samsung, TCL, Tecno and Huawei in Pakistan, has applied for a listing at Pakistan Stock Exchange (PSX). It is planning to float 90 million ordinary shares in its Initial Public Offering (IPO). The company will raise Rs. 4.5 billion from the issue.

According to the details, this is the second draft prospectus of 2020. The company has shared its draft prospectus on the Pakistan Stock Exchange’s website.

According to the initial draft issued by the company to PSX, the entire issue of 90 million (90,000,000) ordinary shares will be offered through the book-building process at a floor price of PKR 50.00/- per share (including a premium of PKR 40.00/- per share) with a maximum price band of up to 40%.

Initially, 75% of the issue size i.e. 67.5 million (67,500,000) ordinary shares will be allotted to successful bidders and 25% of the issue i.e. 22.5 million (22,500,000) ordinary shares will be offered to retail investors.

The Issue comprises of 90,000,000 Ordinary Shares constituting both New Issue (60,000,000 Ordinary Shares) and Offer for Sale (30,000,000 Ordinary Shares) of the face value of PKR 10.00/- each which constitutes 25.0% of the total post-IPO paid-up capital of Air Link Communication Limited excluding mandatory conversion of TFCs amounting to PKR 400 million.

Ordinary shares will be issued/offered at a floor price of PKR 50.00/- per share so as to raise Rs 4.5 billion through this IPO. The new issue will amount to Rs. 3.0 billion.

An individual and institutional investor’s bid amount should be no less than the minimum bid size of PKR 2,000,000 (Two Million Rupees only). Unsubscribed shares, if any, of the general subscription portion will be allocated to successful bidders of the book building portion on a pro-rata basis.

JS Global Capital Limited has been appointed as the Book Runner to the Issue.

Air Link Communication Limited

According to the draft prospectus, Air Link Communication Limited operates in the communications equipment sector and is one of the leading distributors of mobile phone devices in Pakistan with a market share of around 20-25% according to mobile phone import data.

The Company entered into distribution agreements with leading mobile phone manufacturers namely, Apple, Samsung, Huawei, TCL and Tecno and currently operates three flagship retail outlets, two in Karachi and one in Lahore. The Company has a countrywide distribution network consisting of 16 regional hubs linked to 1,000+ wholesalers and 4,000+ retailers to facilitate nationwide sales of mobile phones and accessories.

The Company is the official partner of Samsung Mobiles and Tablets in the territory of Pakistan & Afghanistan. It was also awarded “Platinum National Distributor” and “Sustainable Channel Growth Partner” by Huawei.

The proceeds will be utilized to establish additional retail outlets and inject working capital for further expansion
of its distribution and retail network in more cities of Pakistan.


The Company’s revenue grew from Rs. 2.34 billion in FY14 to Rs. 29.78 billion in FY19 depicting a remarkable 5-Year CAGR of 66%. It has maintained gross and net margins of around 13% and 5% respectively over the last five years.

The company reported a profit of Rs. 1.47 billion in FY19 with an earnings per share of Rs. 5.92. The total debt to equity ratio for the year FY19 was quoted at 2.50

Additionally, the Company was declared 5th top taxpayer for the year 2018 in a ceremony held at Prime Minister’s Office on February 21, 2019.

Pakistan’s Telecom Sector

Pakistan’s telecom sector witnessed significant growth after the introduction of 3G and 4G in 2014. 3G and 4G supported the growth of e-commerce which in turn led to an increase in demand for smartphones.

Preparations to test 5G cellular connectivity have commenced and the country plans to launch 5G technology by 2021.

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