Pakistan’s Lucky Cement to issue GDRs

Pakistan’s Lucky Cement to issue GDRs
Published: 04 July 2007

Lucky Cement said on Tuesday it plans to issue global depositary receipts (GDRs) to raise funds for its expansion plans.  
 
Lucky Cement plans to raise its cement manufacturing capacity by 2.5Mta by building two additional lines in Karachi, it said in a statement to the Karachi Stock Exchange.  
 
It did not give details about the size and timing of the planned GDR issue.  
 
Analysts said once the expansion is complete, Lucky would be in a better position to tap the international cement market.  
 
"By increasing the capacity in Karachi, the company can tap regional cement shortages, as it would be easier to export from here, being located near the port," said Atif Malik, analyst at JS Global Capital Ltd.  
 
Lucky Cement would be the second Pakistani cement maker, after Chakwal Cement, to issue a GDR.  
 
Last month, the Pakistani government raised $650.3m through the sale of a 25 per cent stake United Bank Ltd. through a GDR issue.