KARACHI: Considering the evolving dimensions of the vehicle tracking business, TPL Trakker is all set to raise Rs1.4 billion through an initial public offering (IPO) at the Pakistan Stock Exchange (PSX) in order to expand its operations.

“We are pleased to announce that the board of directors of TPL Trakker Limited (TPLT), a wholly owned subsidiary of TPL Corp Limited, has accorded its approval to TPLT for listing at the Pakistan Stock Exchange and in this respect to submit its listing application before the PSX and the SECP as per applicable rules and regulations,” said a notice of the company sent to the PSX on Friday.

TPL Trakker would be offering 115.7 million ordinary shares of the face value of Rs10 each at a price of Rs12 aggregating up to Rs1.4 billion through the IPO at the fixed price in accordance with the Public Offering Regulations 2017, the notice said.

“We are no longer functioning in the vehicle tracking segment only,” said TPL Trakker Group CFO Adnan Khandwala while talking to The Express Tribune. “We are now in the business of internet of things (IoT) as well, for which we need additional funds and the IPO is the best option for that purpose in these times.”

He elaborated that IoT helped businesses track their supply chain through internet, thus increasing their efficiency manifold.

The official regretted that the benchmark policy rate in Pakistan had been jacked up to 13.25%, hence, borrowing from banks for business expansion was not feasible, therefore, the company resorted to the IPO.

The company has 140,000 to 150,000 active customers in the vehicle tracking segment. Pakistan Telecommunication Authority (PTA) has issued more than 100 licences for such businesses.

TPL Trakker has already diversified its business as it provides container tracking services to the Customs authorities.

The company also provides generator fuel monitoring services, which is a massive expense for banks. Similarly, it is facilitating water usage monitoring in the textile sector where numerous tankers could be traced in one day.

The company is providing IoT services to the firms having a huge fleet of vehicles like oil marketing companies.