Hi-Tech Lubricants Limited (HTLL), a lubricant importer and blender headquartered in Lahore, Pakistan, plans to launch an initial public offering (IPO) in mid-September. The company announced that it has filed a prospectus to float 29 million shares in Pakistan’s premier bourse, the Karachi Stock Exchange.
The company hopes to raise PKR 1,595 million (USD 15 million), based on an estimated price per share of PRK 55 (USD 0.52).
Hi-Tech Lubricants started in 1997 importing finished lubricants from South Korea’s SK Lubricants. In 2011, the company also tied up with PT Pertamina to import Group I base oils from Indonesia’s state-owned oil and gas company. Currently, the company has five warehouses located in Lahore and Karachi.
The company plans to use the funds from the IPO to expand its business, including installing additional filling lines at its 30,000-metric-tonne-per-annum lube blending plant, which is being built in Lahore and is expected to operate by the first quarter of 2016. Hi-Tech Lubricants says it also plans to expand its retail outlets, which offer a range of services, including oil change and car wash, around the country.
Hi-Tech Lubricants says its lubricant market share has increased significantly over the last three years and is now around seven percent.