Fast Cables, the largest power line company in Pakistan, announced that it has carried out one of the largest initial stock offerings on the stock exchange during the current month of May. In order to raise funds to boost production, the company plans to issue 128 million shares at a minimum price of 23.5 rupees per share.

The Lahore-based company seeks to raise 3 billion rupees, which would make it one of the 10 largest initial public offerings in Pakistan.

There are reasons that led the company to resort to an initial public offering or IPO, including increasing its capital by offering shares to the public in order to expand the scope of business and distribute risks away from the founders or early financiers.

The company aims to triple revenues to about 100 billion rupees by 2030, and is expected to build its IPO book on May 15-16.

The largest power lines company in Pakistan aims to benefit from the strong growth of the Pakistani Stock Exchange recently, and the stock index rose by 74%, which makes it the best performer in the world in terms of dollar value, and 3 companies were listed on the stock exchange.

Fast Cables was established in the 1980s and its business is focused on the electricity infrastructure sector, which gives it flexibility in facing periods of economic recession, and its average annual growth rate has increased to approximately 50% over the past five years.

It is considered the only company competing with Chinese companies to win a contract to establish a major electricity transmission line from a large coal mine and electricity project in the Thar Desert. During the month of May, Fast Cables concluded a new agreement to supply medium voltage lines to Sitara Chemical Industries Limited at a value of half a billion rupees.

The company aims to enhance the capacity of a coal-fired power station from 35 megawatts to 85 megawatts, and electricity consumption is expected to decrease again during the current year. Due to high fees, weak industrial activity, and the continued failure to introduce long-awaited upgrades to the electricity network; This will lead to the use of inefficient fuels, such as expensive and polluting fuel oil, despite the presence of cheaper alternatives, such as natural gas.

There is no justification for using fuel oil because Pakistan has abundant LNG imports, but due to network constraints this will lead to the use of fuel oil.

It is expected that the new government will face several challenges: Because of the problems that occurred in the network, power outages occurred repeatedly in Pakistan, in addition to the delayed arrival of fuel imports.