Synthetic Products Enterprises Limited (SPEL) is offering 4.837 million shares to the general public from 6 to 7th January, 2015. SPEL per share price is Rs. 30. Applications can be made for 500 shares or in its multiple. All other applications will be rejected.
The price was discovered through book building in which the subscription was successful below the upper rice limit. Now, 25% of the total portion is being offered to the public as per rules and regulations.
The company operates and run pants that manufactures plastic bottles, plastic packing material, crates, doors for automobiles and others. The company is involved in the following products:
(i) Products for food industry
For FMCG and food industry, SPEL is producing water bottles, water taps, tubs with lids, ice cream containers, cups for yogurt and ice cream, shampoo bottles, plastic trays, plastic crates and plastic cutlery.
(ii) Products for auto industry
SPEL is supplying plastic parts to the auto industry of Pakistan. The major sales under this segment comprises steering wheels, door trims, inside and outside door handles, interior garnishes, steering columns and spinner knobs etc. The Company also produces steering wheels and steering columns for the off road vehicles.
(iii) Products for engineering industry
SPEL has a state-of-the-art Computer Numerically Controlled (CNC) machining centers for producing molds and dies for the engineering industry of Pakistan. Having technology and qualified and experienced staff, SPEL has the capability to produce high precision molds and dies.
The main utilization of the money obtained by IPO will be used for buying machinery including Injection Stretch Blow Molding Machine, Blow molding, Thermoforming, Injection molding machine, Pre forms and Injection molding for auto parts. This will increase the productivity of the company.
The company will be listed under packaging companies.
Some of the analysts are saying that the price of SPEL’s share is high. the price to earning is more than 14 so it would be not a wise decision to go for it. But when it is compared with other companies in the similar category, it stands better than many other companies.