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Case Studies: General Issues

April 29, 2013. IPO Summit Lahore 2013. Case Studies: General Issues . IPO Preparation & the role of Financial Advisor . Case Study: Family Owned Businesses . Issues. Un-audited Accounts No tax return record Lack of budgeting Assets in personal names

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Case Studies: General Issues

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  1. April 29, 2013 IPO Summit Lahore 2013 Case Studies: General Issues IPO Preparation & the role of Financial Advisor Private & Confidential

  2. Case Study: Family Owned Businesses Issues • Un-audited Accounts • No tax return record • Lack of budgeting • Assets in personal names • 3 different private limited companies • IPO in 6 months Expectations Leading bridal wear boutique Team of trained professionals in design Distribution chain of exclusive salons, franchisee shops, premier fashion stores and boutiques Outlets throughout Pakistan and in several foreign cities of London, New York, New Delhi Private & Confidential

  3. Case Study: Family Owned Businesses (Contd.) • Recommendations • Audited financial statements • Induct a reputable auditor • Assets Transfer • Assets Revaluation • Business Consolidation • 3 into 1 • Target 18-24 months period Private & Confidential

  4. Case Study: Corporate Governance Corporate Governance and Consolidation Issues • Confectionary Business • Established sales and distribution network – Central and northern parts of the country/ME exports • Strong Customer base – Leading Multinationals • Spare Capacities Features • Paid capital of nominal value • Decent Reserves • Directors Loan • Multiple companies – Distribution, Procurement and manufacturing • Loan defaults with positive EBITDA/EPS Expectations • IPO in 4 - 6 months • High target price – Premium val. Private & Confidential

  5. Case Study: Corporate Governance (Contd.) • Recommendations: • Capital Base • Issuance of bonus shares • Conversion of loans • Consolidation of business • Clean loan repayment history • Investor Bias • Industry-Sector-Company goes out of favor • Target 8 – 12 months Private & Confidential

  6. Case Study: Investor Appetite A leadingsoftware house and technology based solutions provider • Well set for IPO Compelling Story Features • Company has a history of over 25 years • Diversified shareholding • Minority shareholders looking for liquidity Business Segments Corporate Governance • US based revenues • Sticky customers • Consistent Growth and Returns • Diversified shareholding • Strong board • Professional management • Top rated auditors • BPO • Supply chain management Expectations • Target revenue multiple of 8 times and target price of PKR 75 Private & Confidential

  7. Case Study: Investor Appetite (Contd.) • Recommendations: • Investors Appetite • Lack of appetite for Tech. stocks • Listing at a lower premium at local exchange • IPO vs. OFS • Market Selection • Local vs. foreign markets • Wait for the right time for public offer Private & Confidential

  8. Taking a company public is not an event — it’s a journey. Private & Confidential

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