Select Technologies Limited, a wholly owned subsidiary of Air Link Communication Limited, has announced plans to raise Rs. 2.489 billion through an initial public offering as it looks to expand its technology manufacturing operations in Pakistan.

The company said the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange have approved the issuance of 88.89 million ordinary shares, representing 10 per cent of its post-IPO paid-up capital. The offering will be conducted through the book-building method.

Under the approved structure, 66.67 million shares, or 75pc of the total offering, will be offered to institutional and eligible investors through book building at a floor price of Rs. 28 per share. The maximum price band has been fixed at 50pc above the floor price, allowing bids of up to Rs. 42 per share.

The remaining 22.22 million shares will be offered to retail investors at the strike price discovered through the book-building process. The retail portion of the offering has been fully underwritten.

Registration for eligible investors will begin on June 17 and continue until June 23, while book building is scheduled for June 22 and June 23. Public subscription will open on July 2 and close on July 3.

According to the company, the proceeds from the IPO will primarily be used to set up a new manufacturing facility at the Sundar Green Special Economic Zone in Lahore for the production and assembly of air conditioners. The funds will also be used to expand television manufacturing capacity, invest in machinery for smartphone production and meet working capital requirements.

Select Technologies manufactures and assembles smartphones, smart televisions, air conditioners and other consumer appliances for global brands, including Xiaomi and Hisense. The company said it currently holds a 15.5pc share of Pakistan’s smartphone assembly market and accounted for 7.7pc of total mobile devices manufactured in the country during fiscal year 2025.

Following the planned expansion, the company expects its annual production capacity to rise to 7 million smartphones, 360,000 televisions and 400,000 air conditioner units.

The new facility at Sundar Green Special Economic Zone is also expected to benefit from income tax exemptions until fiscal year 2035, which the company said would support profitability and long-term growth.

The IPO will be jointly managed by Arif Habib Limited and Intermarket Securities Limited, which are acting as consultants to the issue.