Lucky Cement is going to apply to the Securities and Exchange Commission of Pakistan and State Bank of Pakistan for approval of its issue of global depository receipts (GDRs) in the international market, well informed sources disclosed this on Wednesday.
According to a notification issued after the extraordinary general meeting, the company has decided that the aggregate value of the GDR offer including the green-shoe option will not exceed US$150m.
The number of shares contained by each GDR will be determined based on the results of book-building and the GDRs’ price will be determined only after the book-building process is completed.
Lucky Cement will use the amount generated through GDRs for two new plants of 4,200 tonnes per day each to be located near its southern plants. The groundwork has already been started. The new plants would be of the same Chinese technology. However, some major parts will be substituted by European technology, as the company has learnt from the inefficiencies emerging from Chinese technology previously. That is the reason why the company is estimating higher cost per tonne.
The new expansion is expected to come online in second quarter of 2008-09. The total capacity of the company would then stand at 9Mt.