BlueEx, going IPO on PSX to raise Rs445.7M!

BlueEX, a Pakistan-based logistics company and a subsidiary of Universal Network Systems Ltd (UNSL), is planning an initial public offering (IPO) on the PSX to generate Rs445.7 million.

On November 17-18, “accredited investors” will be able to subscribe to 6.85 million ordinary shares — or 25% of the company’s post-issue paid-up capital — on the PSX’s Growth Enterprise Market (GEM) board at a set price of Rs65 per share.

It will be the exchange’s second listing on the GEM board, which is earmarked for “growth firms” with larger investment and liquidity risks than the main board’s mature corporations. As a domestic cargo consolidator, UNSL was founded in 2005. In 2011, it turned its attention to e-commerce logistics, launching the country’s first cash-on-delivery cargo under the BlueEX brand.

“Because of Covid-19, e-commerce has risen significantly in the previous two years.” In Pakistan, it should be worth more than $2 billion. In the next five years, I see it expanding to $6-7 billion,” says UNSL CFO Salman Hameed. He also stated that the company has a 6-8% market share in the country’s e-commerce market.

The primary goal of going public and raising financing is to expand the company’s infrastructure facilities. There are currently 35 stores, with plans to expand to 160 in the next three years. The entire value of cash-on-delivery items moved by BlueEX each year is roughly Rs7 billion, according to the CFO.

News Source: #Profit

Image Source: #BlueEx