Aisha Steel Mills to raise funds

Karachi, June 27, 2012 (PPI-OT): Aisha Steel Mills Ltd (ASML) has opted to raise PkR 100 mn through an Initial Public Offering (IPO) by offering 10 mn shares at a price of PkR 10 per share.

According to Alfalah Securities Limited, the public subscription dates are July 3 and July 4, 2012 for the IPO. ASML has a manufacturing facility of producing Cold Rolling Coil (CRC) with an initial capacity of 220,000 tons per annum. It intends to cater to the steel demands of engineering, auto and home appliances sectors in Pakistan. AMSL is yet to commence commercial operations of the plant while the trial runs have been conducted starting from April 11, 2012. It is an Arif Habib Group owned company along with holdings of Metal One Corporation and Universal Metal Corporation from Japan, as the main sponsors.

Furthermore, as per a recent KSE notice, ASML has informed the stock exchange that litigation proceedings have started in response to ASML’s application for settlement of dispute with Etimaad Engineering (Pvt.) Ltd. in Sindh High Court where ASML has claimed recovery of payments and damages of PkR 1,109 mn along with mark up accrued thereupon. An additional amount of PkR 20 mn has also been claimed as costs while these claims are net of PkR 99.37 mn that has been already recovered from Etimaad. On the flip side, Etimaad has made a counter claim of PkR 819.936 mn from ASML. Alfalah Securities Limited is currently analyzing the company and will apprise Alfalah Securities Limited’s valued clients with further details on the issue shortly.

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