Regal Automobiles to Set Up an EV Plant in Pakistan

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Regal Automobiles, one of Pakistan’s motorbike manufacturers, entered the car market last year. After introducing a hatchback and an SUV, the company is now planning to launch electric cars in Pakistan. 

Regal Automobiles has reportedly applied for listing on the Pakistan Stock Exchange (PSX) to raise Rs. 800 million funds to set up an EV assembly plant in the country. The company has appointed Arif Habib Limited (AHL), Pakistan’s largest securities brokerage, investment banking, and research firm, as its Book Runner.

Stocks of Regal Automobiles

According to a notice posted on the PSX website, Regal Automobiles is floating an Initial Public Offering (IPO) of 25 million shares with a floor price of Rs. 32. 

Initially, 75% of the ordinary shares, i.e., 18.75 million, will be allotted to successful bidders, and the remaining 25%, i.e., 6.25 million ordinary shares, will be offered to Retail Investors at the Issue Price. Any unsubscribed retail portion will be allocated to successful bidders on a pro-rata basis.

Regal EV Assembly Plant

Regal Automobiles plans to invest the funds raised from the Stock Exchange in an EV assembly plant. The plant will be located at a 3 acres site at Multan Road, Manga Mandi, Lahore. The company has signed an agreement with an exclusive supplier of DFSK Motors of China to import machinery for the EV assembly.

The company has made an Initial Public Offering (IPO) with a target amount of Rs. 800 million. Any excess funds raised might also be utilized in the expansion of the EV plant.

Regal Automobiles is assembling and selling cars under the brand name Prince DFSK. It has introduced an 800cc hatchback Prince Pearl and a crossover SUV DFSK Glory 580 (and 580 Pro). We have also heard about the company planning to launch a small crossover DFSK Glory 500 to its lineup. Entering the EV segment may or may not work out for a new entrant like Regal. 

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