By Moaaz Manzoor

Select Technologies’ heavily subscribed public offering has demonstrated investor appetite for technology manufacturing, but analysts say its post-listing performance will depend on execution, product quality and expansion beyond its core assembly business.

Speaking to Wealth Pakistan, market expert and economic analyst AAH Soomro said the IPO appeared fairly priced, offering only nominal immediate upside compared with some established listed companies already trading at attractive valuations.

He said the response was encouraging but did not match the exceptional investor frenzy witnessed in some recent offerings, including the Servis Long March IPO. Select would therefore need to deliver stronger operating performance to generate attractive returns for investors who participated in the offering.

“The company will need to perform much better in its core assembly business and successfully introduce new products to provide handsome returns to IPO investors,” Soomro said.

Select Technologies raised Rs3.02 billion by issuing 88.9 million ordinary shares, equivalent to 10% of its post-issue paid-up capital. The strike price was discovered at Rs34 per share, 21% above the floor price of Rs28, following demand from institutional and retail investors.

The issue was subscribed 3.23 times and attracted around 13,000 investors, including commercial banks, mutual funds, insurance companies, pension and employee funds, brokerage houses, corporate investors, high-net-worth individuals and retail participants.

Select’s investment appeal is linked to its position within the AirLink Group’s technology-manufacturing ecosystem. The company operates as a local manufacturing and assembly platform for smartphones and consumer appliances, while its parent company, AirLink Communication Limited, has a business partnership with Xiaomi.

This connection gives the newly listed company access to an established technology brand and a broader market network. However, analysts said the longer-term investment case would depend on whether Select can translate the relationship, the new capital and its manufacturing capability into sustained revenue and earnings growth.

Meanwhile, Syed Zafar Abbas, Manager at Zahid Latif Securities, said Select operates in a forward-looking segment covering technology, consumer electronics and household appliances, but would face strong competition from established market participants.

He said the company’s ability to build a durable position would depend on effective marketing, product quality and successful implementation of its expansion plans.

“There is already considerable competition in the market. If the company markets its products effectively and maintains quality, it can secure a position; otherwise, growth will remain difficult,” Abbas said.

He added that the early post-listing response appeared measured rather than driven by excessive speculative enthusiasm, indicating that investors would now look for evidence of the company’s operational performance.

The company has said the IPO proceeds will be used to expand manufacturing capabilities, strengthen product innovation and enhance its presence in Pakistan’s smartphone and consumer-appliance markets.

The listing also comes amid a broader revival in Pakistan’s primary equity market. According to the Pakistan Stock Exchange, FY2026 recorded 11 IPOs, the third-highest number in 25 years, raising $66 million.

The Exchange’s average daily traded value reached a record $205 million, or approximately Rs57 billion, across 537 listed companies. Market capitalisation closed FY2026 at Rs20.20 trillion, equivalent to about 16% of gross domestic product.

The investor base also reached 583,052 accounts, with around 16,000 new accounts opened each month on average, up from 5,290 previously.

For Select, however, the successful subscription has completed only the fundraising stage. Its next test will be whether the Xiaomi-linked manufacturing base, AirLink’s market reach and Rs3.02 billion in fresh capital can support product expansion, stronger competitiveness and sustainable shareholder returns.

Credit: INP-WealthPk