The newly-listed smartphone assembly company as well as distributor Air Link Communication Limited announced that it will create an entirely-owned subsidiary called Select Technologies (Pvt) Limited’ that will make mobile phones of “selected brand names.’
Air Link Communication Limited, in its submission in the Pakistan Stock Exchange (PSX) on Wednesday, announced that the “board members have decided to form a wholly-owned subsidiary owned by Air Link Communication Limited in the name and style of “Select Technology (Pvt) Limited”.
The company said it will make the investment amounting to Rs500million, at 10 per share for this reason.
“The main goal of the wholly-owned subsidiary is to acquire the manufacturing of mobile devices of the selected brand(s),” read the announcement.
“The authorized share capital of the corporation shall be and will be hereby raised from Rs4,000,000,000 and divided into Rs10-valued shares of 400,000,000 each, to the amount of Rs6,000,000,000 which is divided into 600,000,000 Rs10 shares each that rank as pari passu in all respects together with the common shares issued by the company,” it added.
In the month of August Air Link launched its Initial Public Offering (IPO) which was a huge success, with the IPO being well-subscribed 1.6 times.
Book-building led to the strike price being Rs71.5 at the close of the two-day procedure.
The company is among the largest distributors of mobile phones in Pakistan with an estimated market share of 20% in the market for import mobile phones, stated Ismail Iqbal Securities at the time of the IPO.
The company has also started manufacturing smartphones locally within Pakistan from April. The company has an annual capacity of up to 400,000 units that are anticipated to increase to 550,000 units in FY23.
The smartphone market in Pakistan has seen an increase in international players in the last few months, and the country’s young population has made it an appealing market for manufacturers of mobile phones.
Recently, Chinese company Vivo opened its first smartphone manufacturing plant in Pakistan and has other competitors like Xiaomi and Realme are already preparing to launch local manufacturing facilities in the coming months.
Lucky Motor Corporation (LMC) is one of the subsidiaries of Lucky Cement Limited, also signed an agreement with Samsung Gulf Electronics Co., FZE (Samsung) for the manufacture of Samsung-branded mobiles in Pakistan.