Our Special Correspondent
The Initial Public Offering (IPO) of Orient Rental Modaraba (ORM) is oversubscribed by four-fold to Rs 559 million in the market despite depressed modaraba perception. This was stated by the Director Orient Rental Modaraba, Ali Akbar Abdullah while addressing in a ceremony at Orient Rental Modaraba head-office on Thursday.
He said that this floatation is unique and first of its kind in the sense that it has a reissue of shares of Rs 250 million.
The total share of Modaraba is Rs500 million initially with the green-shoe offer of Rs 250 million but the depressed Modaraba perception, we issue 30 percent of the Modaraba size in the market which represent 15 million certificates valuing Rs150 million. The Modaraba subscribe to Rs559 million that represents four times oversubscribe in the current market condition. “We appreciated all those who shown their confidence in the Orient Group and participated in Initial Public Offering (IPO) activities. Right now the current sale of Orient Modaraba is Rs750 million and we basically intend to do the business of rental and operation business from this platform,” he informed.
“I appreciated the contribution of our consultant of the issue, Arif Habib Limited, and underwriter of the issue who stay with us as a partner Bank Islami Limited who also contributed 50 percent of the underwriting, MCB Limited, and the Arif Habib Limited,” he remarked.
The Chief Executive Officer of Orient Rental Modaraba, Giasuddin Khan said there is a continuous debate going on within the organization about in-sourcing and out-sourcing what is core in that company, core value or core competence only that part a company trying to retake and other things that are not important they are out-sourcing it, he added.