Interloop, the sock supplier for Nike and Adidas is all set to lead Pakistan’s largest private IPO
You might have not heard the name of company Interloop from Pakistan, but at some point or the other you would have used their products if you are a consumer of Nike, Adidas, Reebok, Levis, and Tommy Hilifiger. Can’t figure out how that is possible? Well, the answer is pretty simple. Interloop is one of the biggest textile firms from Pakistan which caters to these aforementioned companies with its hosiery products. It is also one of the leading hosiery suppliers as well as the manufacturer of hosiery products, in the world.
Well, this is about to change. This company is about to become the talk of the financial world as it set to initiate the largest Initial Public Offering in Pakistan, from the private sector, in this coming January. The plan is to raise about $51 million rupees by offering 12.5 percent of its business on sale as a part of their plan to raise the revenue by 77% over the next five years. That makes about 109 million shares which will be up for grabs by the public at a base price of Rs. 45 with a maximum price band of up to 40 percent.
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The company has been keenly planning the details about this IPO which is going to go hand in hand with its plan to expand further. The plan is to expand the sock manufacturing business by about 20% as well as enter into the denim business, according to the Chairman and Co-founder, Musadaq Zulqarnain. According to Bloomberg, Zulqarnain said
“Our capacity is already full,” in an interview at the company’s head office in Faisalabad. There is potential to grow more in the company so the management is willing to “take that risk”, he believes.
They are one of the most well-managed companies in Pakistan, so they should not have a problem with demand,” said Amjad Waheed, chief executive officer at NBP Fund Management Ltd. in Karachi.
“Investors are sitting with cash on the sidelines after the market drop over the past year.”
The company employs about 16,000 people, has total annual turnover of more than $270, and was founded in 1992. Imagine that? We have this gem of a company right under our noses and most of us did not even know about it.