Select Technologies announces PKR 2.489 billion IPO to expand technology manufacturing

Select Technologies Limited, a wholly owned subsidiary of Air Link Communication Limited, has announced plans to raise PKR 2.489 billion through its Initial Public Offering (IPO) at the floor price, marking a key step in its growth strategy to expand local manufacturing of smart devices and consumer appliances in Pakistan.

The Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange Limited (PSX) have approved the issuance, circulation and publication of the IPO prospectus for Select Technologies. The company will offer 88,888,889 ordinary shares, representing 10% of its post-IPO paid-up capital, through the book-building method.

Under the approved structure, 75% of the issue size, comprising 66,666,667 shares, will be offered to eligible investors through book building at a floor price of PKR 28 per share. The maximum price band has been set at up to 50%, taking the cap price to PKR 42 per share. The remaining 25% of the issue, comprising 22,222,222 shares, will be offered to retail investors at the strike price determined through the book-building process. The retail portion will be fully underwritten.

Registration for eligible investors will begin on June 17, 2026, and close on June 23, 2026. The book-building process will take place on June 22 and June 23, 2026, while public subscription is scheduled for July 2 and July 3, 2026.

Arif Habib Limited and Intermarket Securities Limited are acting as joint consultants for the issue.

The IPO proceeds will primarily be used to finance the establishment of a new state-of-the-art production facility at Sundar Green Special Economic Zone, Lahore, for manufacturing and assembling air conditioners. The funds will also support expansion of the company’s television production line, investment in smartphone plant and machinery, and working capital requirements.

Select Technologies manufactures and assembles smartphones, smart TVs, air conditioners and other consumer appliances in Pakistan for globally recognized brands, including Xiaomi and Hisense.

The company has already established a presence in Pakistan’s technology manufacturing sector, holding a 15.5% share in smartphone assembly and a 7.7% share of total mobile devices manufactured in FY2025.

Following the expansion, Select Technologies’ combined annual production capacity is expected to reach 7 million smartphones, 360,000 televisions and 400,000 air-conditioner units. The Sundar Green SEZ facility is also expected to provide strategic tax benefits, including income tax exemption until FY2035, supporting improved margins and long-term shareholder value.