AIR LINK, A GOOD TO GO

The advent of competition amongst Lead-Managers is yielding 'good' to 'poor' Investors. A number of friends and invested individuals keep texting me about their feelings about state of affairs at PSX.

Citi Pharma broke the myth and impression that a successful IPO has to have a particular broker behind, yet, it created another fallacy that "an under-priced IPO would over-perform and would discover a its price, anyway....... "i believe, "payouts" are to be taken as the best "to judge" -- as to whether, an IPO was under-priced OR overpriced"

Certain newly listed stocks are analogous to investments in DADABHOY plots, so what you see in such stocks is that "when whole market has upper locks, these stock would trade at floor", and like DADABHOY plots, the price would not inch forward unless 85% of holding is back into the cradle of the owner of Society or a Scheme in the stock...

Air Link is the 8th IPO, 7 IPOs have been from FY18 to FY20, as Pakistan’s stock market was marred with liquidity crunch and fighting for restoration of home-grown-badla and dealing with FATF issues.

The Company AIMS to target 48 million banked population and enhance its present capacity of 6 million cell-phone production capacity to cater to fast growing demand of smart phones which is growing at a much faster pace in the wake of e-commerce and App. Based Marketplace Development.

The Securities and Exchange Commission of Pakistan has ensured disclosures, and on the face of it, the "Company" can be categorized under the basket of IPO's which has given good capital gains and going forward, it would the payouts which actually determine the fate of an investment.

AIR LINK is a Distributor(s) of mobile phone devices and accessories for Apple, Samsung, Huawei, TCL and Tecno, holding a substantial market share of around 20-25% consisting of 16 regional hubs linked to 1,000+ wholesalers and 4,000+ retailers.

They have got a good clientele which include Daraz, Carrefour, HBL, ufone, ptcl, telenor, KE, Nestle, Zong, Jazz, and Punjab Government.

The ostensible reason for raising of funds seems plausible as establishing additional retail outlets would require injecting fresh capital to finance the growth and expansion of distribution network across Pakistan.

Manufacturing exorbitant smart phone devices would mitigate the risks associated with increase in custom duties, the idea of coming up with Smart Phone at cost / price of Rs. 7000/- has a potential to help this idea takeoff