▲ 6 r/FIREPakistan
Service Long March IPO commentory:
I was expecting comments on this IPO at PRIDE section of PSX, date has passed but no comments. This is suspicious as well.
So some of the critical commentary on Prospectus:
1-Artificially inflated FY2025 PAT (deferred tax reversal of PKR 3 Bn)
2-Aggressive valuation at 3.4–3.6x book vs. peers at <1x (every recent IPO did this practice, GDL, Sitara Petrole)
3-Only 5% public float, extremely thin liquidity post-listing
4-Chinese JV partner simultaneously supplying raw materials and technology, unverified arm's-length pricing
5-PCR project with no signed machinery contracts, unfunded debt component, and unvalidated demand projections
6-51.7% export concentration in one customer
7-PKR 1.43 Bn in unprovisioned litigation
Should we invest or not?
u/Bilal_Sawati — 1 day ago