SAIF Power (SPL) has announced its first general public initial public offer from 11th to 12th November 2014 through nominated banks and brokers. The IPO can be subscribed through ABL, AKBL, BAFL, BoP, FABL, HBL, HMBL, SILK, SUMMIT and UBL. UBL also offers online subscription through its net banking.
The company is offering 12.07 million shares through its IPO which is 25% of the offer.The company operates a 209 MW power plant on duel fuel. The plant can be operate on HSD alone and it will not affect the earnings of the company as per NEPRA tariff.
The strike price of SPL was set at Rs. 30 per share in its book building process. This was the upper possible price in the limit set during the book building, which was from Rs. 18 to Rs. 30. SPL has also issued a dividend of Rs. 2 per share for all subscribers.
Some brokerage houses have recommended to go for its IPO including IGI and Arif Habib. Shares can be subscribed wither in Physical form or CDC trade able shares. The minimum subscription is 500 shares and the money can be deposited through Demand Draft or crossed cheque in the name of “Offer for Sale of Shares of Saif power Limited – General Public Account“. marked A/C Payee Only.
Saif Power plant operates on both Gas and HSD so has a greater efficiency than other market competitors. Keep in mind that the price of share could range in Rs. 24 to Rs. 34 per share after its listing on Karachi Stock Exchange so risk is involved.