Dutch Auction Method The method through which the Strike Price is determined

Dutch auction method the method through which the

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Dutch Auction Method The method through which the Strike Price is determined. Under this method, all the bids are arranged in descending order along with the number of shares bid for at each price level and the cumulative
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Page 5 of 94 number of shares bid for. The strike price is determined by lowering the price to the extent that the total shares the Issuer intends to issue through the Book Building process are subscribed. Employees Employees of Engro Fertilizers Limited. Final Prospectus A document containing all the information and disclosures as required under the Companies Ordinance, 1984 together with disclosure of the Strike Price and results of the Book Building process. Financial Advisors Habib Bank Limited and Allied Bank Limited. FFM Consortium Floor Price A consortium of four fertilizers manufacturers which include Engro Fertilizers Limited, Pakarab Fertilizers Limited, DH Fertilizers Limited and Agritech Fertilizers Limited. The minimum price set by the Issuer for the Book Building which is PKR 20/- per share. A Bid placed below the Floor Price will not be entertained by the Joint Book Runners. General Public All Individual and Institutional Investors including both Pakistani (residents & non-residents) and foreign investors. Issuer Engro Fertilizers Limited or the Company. Issue Initial Public Offer of 75,000,000 Ordinary Shares (5.8% of the total Post-IPO Paid Up Capital) of Face Value of PKR 10/- each. Book Building Portion of the Issue comprises of 56,250,000 Ordinary Shares (75% of the Total Issue) at a Floor Price of PKR 20/- per share including premium of PKR 10/- per share. General Public Portion of the Issue comprises of 18,750,000 Ordinary Shares (25% of the Total Issue) at an Issue Price of PKR 28.25/- per share including premium of PKR 18.25/- per share. Issue Price The price at which Ordinary Shares of the Company are issued to the General Public. The Issue Price is the Strike Price i.e. PKR 28.25/- per share. Joint Book Runners AKD Securities Limited & Next Capital Limited. High Net worth Individual (HNWI) Individual investor who applies or bids for shares of the value of PKR 1,000,000/- or above in the Book Building process. Institutional Investors Both local and foreign Institutional Investors. Lead Managers Habib Bank Limited and Allied Bank Limited. Limit Price The maximum price a prospective Institutional Investor or HNWI Investor is willing to pay for a share under the Book Building process. Margin Money The partial or total amount, as the case may be, paid by a Bidder at the time of making a Bid. Ordinary Shares Option Exercise Price Ordinary Shares of Engro Fertilizers Limited having face value of PKR10/- each, unless otherwise specified in the context thereof. The price at which IFC can convert its loan of US$ 9 million into Ordinary Shares of the Company. The option expires on March 31, 2017.
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