It plans to export 85% of tyre production
Nasser stressed the need to increase tyre manufacturing units if the government wanted the end-consumers to truly benefit. PHOTO: REUTERS
KARACHI:
Service Global Footwear Limited (SGFL) - a leading exporter of footwear - has entered into a joint venture with Chinese firms to establish a tyre manufacturing plant for buses and trucks with the aim of exporting a majority of the merchandise.
The new production facility is being established in Pakistan at a time when the US and European Union (EU) have imposed anti-dumping and countervailing duties on tyres made in China.
The development may help the joint venture win export orders from Western markets as the grant of tax exemptions to the company will keep its cost of production comparatively low.
Service Global Footwear IPO: How much the stock is worth?
Experts are divided on the share price SAMAA | Bilal Hussain - Posted: Apr 7, 2021 | Last Updated: 4 hours ago SAMAA | Bilal Hussain Posted: Apr 7, 2021 | Last Updated: 4 hours ago
As the Service Global Footwear Limited begins to raise funding through initial public offering at the Pakistan Stock Exchange, experts are divided on what will be the fair price of the stock.
The SGFL is looking to raise at least Rs1.55 billion by offering its 40.9 million shares to institutions and rich individual investors on April 7 and 8. The stock will be sold to common investors on April 12 and 13 at the PSX.
The March 26 decision to withdraw incentives for new listings on the Pakistan Stock Exchange (PSX) makes no sense.
Just compare the number of listed companies on the Bombay Stock Exchange 5,439 with market capitalisation of $2.8 trillion with the miniscule 540 on the PSX and market capitalisation of $52 billion. It can be concluded that public money managers in Islamabad do not understand the importance of mobilising funds from the equity market by companies.
The tax credit granted to encourage companies for enlistment was abolished through Tax Laws (Second Amendment) Ordinance 2021. The concession had been granted through Finance Act 2010, which provided that “Where a taxpayer being a company opts for enlistment in any registered stock exchange in Pakistan on or before June 30, 2022, a tax credit equal to 20 per cent of the tax payable shall be allowed for the tax year in which the said company is enlisted and for the following three tax years: provided that the tax credit