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Tel: +92 21 3241 5213 - 15, +92 21 3246 0716 - 18 Fax: +92 21 3241 6072 Web: www.arifhabibltd.com
Our team of highly experienced professionals managed 11 transactions valued at PKR 8.2 billion over the last 3 years
CORPORATE FINANCE
1. INTRODUCTION
Arif Habib Limited (AHL) ranks amongst the most successful securities brokerage and investment advisory service providers in the country. With net equity of over PKR 1.38 billion, AHL is also one of the largest corporate brokerage companies in Pakistan. Publicly listed, it is a member of Karachi, Lahore and Islamabad Stock Exchanges and of National Commodity Exchange Limited. The Company’s principal businesses include securities brokerage, financial consultancy, risk underwriting, investment research and the entire spectrum of corporate finance advisory services. AHL received the top 25 companies’ award consecutively in 2008 & 2009.
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75% owned by AHSL (core business) and 25% by general
public
Top 25 companies of Pakistan award by KSE over last 2
years
Corporate member of KSE, LSE, ISE and NCEPL
Market Leader in Corporate Finance
Professional Management
Engaged in Brokerage, Corporate Finance and Equity
Research
CORPORATE FINANCE
Our solution oriented approach, coupled with in-depth knowledge of the markets, pricing mechanism, delivery and distribution capability enable us to be recognized as one of the leading financial services providers in the country. These, coupled with its capacity to underwrite large transactions and its long-standing relationships with key market participants, have helped AHL become one of the dominant players in equity-related issues in recent years.
PKR Million Year Ended 30 June 2010 Year Ended 30 June 2009
Revenue 222.66 201.53
Net profit 150.28 153.04
Total assets 2,069.84 2,827.98
Shareholder equity 1,252.22 1,146.94
EPS (PKR) 4.01 4.08
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Amongst the Largest & most successful full service securities brokerage and corporate finance companies at Karachi Stock Exchange
Established in 2005
Inherited the Broking & Corporate Finance business from its parent company ‘Arif Habib Securities Limited’
Listed on Karachi Stock Exchange in 2007
Equity capital market share of 77% (2010)
CORPORATE FINANCE
AHL is a subsidiary of Arif Habib Securities Limited (AHSL), the holding company of the Arif Habib Group. AHSL has controlling interests in enterprises competing across all major segments of the financial service industry— asset management, securities brokerage, microfinance, RIET management and private equity
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CORPORATE FINANCE
2. ARIF HABIB LIMITED – CORPORATE FINANCE
The financial crisis has had a severe impact on companies across various industries. Demand for many products has fallen; financing is difficult to obtain; the M&A market has slowed down significantly and valuation levels have declined. In this environment, sound advice is more important than ever. Our Corporate Finance team can help you to weather this storm and to capitalize on new opportunities with services specifically tailored to current market conditions.
Corporate Finance is a source of pride at Arif Habib Ltd. Our expertise and strong delivery capacity act as a catalyst in achieving the best investment solutions for our clients. We are a clear leader in this Market as indicated by our Equity Capital Market share of 77% in 2010. Our team of highly experienced Investment Bankers managed 11 transactions valued at PKR 8.2 billion over the last 3 years (ranked 1).
AHL’s role can be best summarized as that of deal manager and advisor in all stages of the transaction process. We can assist our clients in the total deal management and the structuring of the transaction.
The corporate finance function offers a wide range of financial services:
Capital Markets Mergers and Acquisitions Corporate Advisory Private EquityIPO management and
underwritingSecondary market
placementsEquities distributionRights issuesShare purchase plansDividend reinvestment
plansDebt Syndications
Acquisition and bidding strategy
Takeover defensesStructuring and pricing
adviceDue diligencePublic to Private transactions Asset divestments and off
balance sheet funding structures
General financial and strategic advice to company boards
Arranging equity funding for unlisted companies
Pre-IPO PlacementsLBOs MBOs and Venture
Capital
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CORPORATE FINANCE
AHL’s Corporate Finance is focused on assisting corporate clients to develop and implement transactions that create value. Our team is highly experienced and takes great pride in delivering innovative solutions that help clients achieve their strategic and financial objectives.
For equity capital market transactions we draw upon our extensive network of investor clients comprising institutional funds, high net worth investors and retail investors.
3. WHY CHOOSE ARIF HABIB LIMITED’S CORPORATE FINANCE
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CORPORATE FINANCE
4. RECENTLY CLOSED TRANSACTIONS & MAJOR ONGOING PROJECTS
Recently Closed Transactions
Advisor & Arranger: IPO (including the Green Shoe Option of 0.90bln) of Wateen Telecom Limited – PKR 2.0bln
Advisor & Arranger: IPO (including Book Building) of Fatima Fertilizer Limited – PKR 2.6bln
Advisor & Arranger: IPO of SafeMix Concrete Products Limited – PKR 0.125bln
Key Ongoing Transactions
Offer for Sale of an Independent Power Producers
Initial Public Offering of an Independent Power Producer
Right Issue of a Manufacturing concern
Commercial Paper for companies in Fertilizer and Textile sectors
Initial Public Offering an a Financial Services Company
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CORPORATE FINANCE
5. SELECTED PAST TRANSACTIONS
Company AHL’s Role Particulars
Fatima Fertilizer Co. Limited
Lead Manager
Offer of 150mln shares through book building and 50mln shares to general public by way of an IPO
Heavily over-subscribed
Lead Manager
IPO of 110mln shares with a Green Shoe Option of 90mln shares
Successfully subscribed
Lead Manager
IPO of 10mln shares offered at Rs. 12.50 per share
Over-subscribed
Lead Manager
Offer for Sale of 119.748mln ordinary shares from existing shareholder i.e. Arif Habib Securities Limited at a price of PKR 21/- per share (inclusive of premium of PKR 11/-per
share)to the general public
Heavily over-subscribed
Lead Manager
Sale of shares from existing shareholders to the general public.
Successfully subscribed
Lead Manager
IPO of 25mln ordinary shares at an offer price of Rs. 15 per share including a premium of Rs. 5 per share.
Under-subscribed
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CORPORATE FINANCE
Dost Steels Limited
Lead Manager
IPO of 27.5mln ordinary shares at an offer price of Rs. 10 per share.
Heavily over-subscribed
Dewan Farooq Motors Limited
Lead Manager
Sale of ordinary shares from existing shareholder to the general public at an offer price of Rs. 15 per share including a premium of Rs. 5 per share.
Orix Leasing Pakistan Limited
Lead Manager
Underwriting the Right issue of size 758mln rupees.
Lead Manager Valuation, Underwriting and Consortium arrangements.
Pervez Ahmed Securities Limited
Lead Manager
IPO of 25mln ordinary shares at an offer price of Rs. 10 per share.
NIB Tender Offer
Lead Manager Tender Offer from NIB Bank Limited for the acquisition of 58mln shares of PICIC.
Lead Manager
Sale of shares of Siddiqsons Tinplate Limited from existing shareholder to the general public of a value of PKR 500mln.
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CORPORATE FINANCE
Allied Rental Modaraba
Lead Manager
Sale of ordinary shares from existing shareholder to the general public with total transaction amounting to PKR 150mln.
Lead Manager
Sale of ordinary shares from existing shareholder to the general public with total transaction amounting to PKR 150mln.
Lead Manager
Sale of shares worth PKR 100mln by the owner to the general public.
Rozgar Microfinance BankLead
Advisor & Arranger
Placed equity of PKR 50mln after conducting valuation and reviewing the feasibility report of the project.
Lead Manager
10mln ordinary shares at an offer price of Rs. 22.5 per share including a premium of Rs. 12.5 per share, total issues size PKR 225mln.
Highoon Laboratories Pakistan Limited
Lead Advisor
Buy side advisory for the acquisition of M/s. Bristol Myers Squibb Pakistan (Pvt.) Limited – PKR 3bln.
Government of Pakistan
Lead Advisor
Conducted feasibility study and identified potential investors to buy the GoP owned shares in the Bank Alfalah.
6. TEAM Key team members Position Years of Professional role
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CORPORATE FINANCE
experience
Mr. Samad A. Habib Chairman
Advisor 15- Oversight functions for the entire transactions;- Identification of potential buyers, when required
Mr. Bilal MotiChief Executive Officer
Advisor 24- Soft marketing;- Participation in the road shows;- Presentations to potential investors.
Mr. Rafique BhundiHead, Corporate Finance
Transaction Managers &
Executors
35- Conduct due diligence;- Liaison with the regulatory agencies;- Arrangement of necessary documentation for
regulatory approvals;- Coordination amongst potential bidders and the
divestment committee;
Mr. Kashif SuhailVice President, Corporate Finance
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Mr. Saifuddin ShamsiSenior Analyst, Corporate Finance
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- Collection of primary data to carry out market studies;- Perform sector analysis, peer comparisons,
benchmark studies;- Conduct financial analysis, business valuations;- Draft marketing documents and make investor
presentations.
7. CORPORATE FINANCE TEAM PROFILES
RAFIQUE BHUNDI – HEAD [email protected]
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CORPORATE FINANCE
Mr. Bhundi brings on board a diversified experience of 35 years in the fields of project finance, investment banking, risk management, accountancy and internal audit. Prior to joining Arif Habib Limited, Mr. Bhundi was affiliated with ATCO Laboratories as a General Manager Business Appraisal. Mr. Bhundi has also worked at HBL for 22 years in various capacities including Senior Vice President – Assets Remedial Management. He gained rich experience of Project Financing & Rehabilitation/Restructuring of Industrial Projects while working in various capacities during his tenure at HBL. He has also been associated with Dewan Group for 8 years working in the finance and import/export divisions. At Arif Habib Limited, Mr. Bhundi is responsible for the planning, guiding and supervision of the corporate finance projects. Mr. Bhundi holds an MBA Finance from IBA.
KASHIF SUHAIL – VICE PRESIDENT [email protected]
Mr. Suhail has extensive Investment Banking experience with his forte in Capital Markets. He has been associated with Arif Habib Limited for the last 5 years and has played an instrumental role in the successful execution of some of the key capital market transactions over the last few years including the listing of Fatima Fertilizer Limited, Safemix Concrete Limited and recent IPO of Wateen Telecom Limited. He possesses sound understanding of the underlying complexities involved in corporate finance transactions. Mr. Suhail holds an MBA degree in Finance.
SAIFUDDIN SHAMSI – SENIOR ANALYST [email protected]
Mr. Shamsi’s role in the team involves assistance in research & analysis, company valuations, due-diligences and drafting marketing documents. Prior to joining Arif Habib Limited, he has worked in the Corporate Finance Divisions of Elixir Securities Pakistan Limited and KMPG Taseer Hadi & Co. Mr. Shamsi is an Affiliate Member of the Association of Chartered Certified Accountants (ACCA) and has also successfully written Level 1 Exam of the Chartered Financial Analyst (CFA) Institute in December 2009. He also holds BSc (Hons) Applied Accounting from Oxford Brookes University, UK.
8. KEY CONTACTS
Rafique Bhundi Kashif SuhailHead – Corporate Finance Vice President – Corporate FinanceDirect: +92 21 3246 0741 Direct: +92 21 3246 2597
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CORPORATE FINANCE
Email: [email protected] Email: [email protected] ES
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9. ADDRESS
2ND FLOOR
ARIF HABIB CENTRE
23 M.T. KHAN ROAD, KARACHI
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