The local Kohat Cement Company held a public share offer on 15 December to raise finance for a Rs 587.6 million ($19.2 million) modernisation programme. The aim is to increase clinker production to 1,800 tonnes a day (t/d) from 1,000 t/d.
Approximately 1.9 million shares were offered to the public with a face value of Rs 10 ($0.33) and a premium of Rs 42 ($1.37). The price reached Rs 71 ($2.32) during trading. The minimum application was for 200 shares. The local National Investment Trust had the option to buy a further 219,334 shares. The issue has been underwritten by Askari Commercial Bank, Union Bank and Citicorp Investment Bank (Pakistan). The local Palace Enterprises (Private) bought a 90 per cent shareholding in Kohat Cement in 1992 from the State Cement Corporation of Pakistan.
New machinery for the expansion project is on order from Belgium’s Magotteaux International and KHD Humboldt Wedag, Claudius Peters, and Krupp Fordertechnik, all German. It will be installed by September 1995, with production at 1,800 t/d due to begin by November 1995. Total production from the 23 local cement plants is approximately 24,100 t/d but local demand is forecast to rise to 41,000 t/d by 2000.