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Universal Networks Systems Limited (BlueEx): -

Sarmaaya Desk
Sarmaaya Content Team
About:

UNS was incorporated in 2005 as a Domestic Cargo Consolidator and shifted its focus towards E-Commerce Logistics in 2011 with the first COD shipment conducted in Pakistan under the BlueEX Brand. The Company introduced E-Commerce to Pakistan when they launched the Online Booking System in 2011 and over the next few years established a reliable Cash on Delivery Network across the country. Today, these standards and practices have become the industry standard for ECommerce Logistics in Pakistan. UNS is the only International Air Transport Association (IATA) certified courier company in Pakistan and also has Certification from International Federation of Freight Forwarders Associations (FIATA).

Listed Associated Company:

Mrs. Safina Danish Elahi is the principal sponsor of the Company. Her husband, Mr. Danish Elahi of the Elahi Group of Companies, is the primary sponsor of Cordoba Logistics & Ventures Limited (formerly Mian Textile Industries Limited) after having acquired 70.23% shareholding in the company in Feb 2021.

Group & Associated Companies

Pre-Issue Capitl Structure of the Issuer
Shares issued in preceding year:

1)In Year 2005, 4 shares of PKR 100 par value each where issued to (i) Mr. Imran Baxamossa, (ii) Mr. Salim Rajab Ali Baxamoosa (Father of Imran and Ali Baxamoosa), (iii) Muhammad Farukh Iqbal and (iv) Mushtaq Ahmed, respectively.
2)In Year 2006, 39,996 new shares of PKR 100 par value were issued to (i) Mr. Imran Baxamoosa, (ii) Mr. Salim Rajab Ali Baxamoosa (Father of Imran and Ali Baxamoosa), (iii) Muhammad Farukh Iqbal and (iv) Mushtaq Ahmed. 9,999 shares to above four.
3) In Year 2017, 17,143 new shares of PKR 100 par value (by way of rights) were issued at Price of PKR 2,525 (premium of PKR 2,425) to (i) Mr. Danish Elahi (11,429 shares) and (ii) Mr. Stirling Alexander Cox (5,714 shares).
4) In Year 2021, 2,000,000 new shares of PKR 100 par value (by way of rights) were issued at par to out of which 991,097 shares were issued against cash consideration to (i) Mr. Danish Elahi (985,348 shares), (ii) Mr. Imran Baxamoosa (2,857 shares), (iii) Mr. Ali Aamer Baxamoosa (2,858 shares), (iv) Mr. Sohail Ilahi (17 shares) and (v) Mr. Misbah Khalil Khan (17 shares). Further 1,008,903 new shares were issued of PKR 100 par value (by way of rights) were issued against conversion of sponsor’s debt to (i) Mr. Danish Elahi (808,903 shares), (ii) Mr. Imran Baxamoosa (100,000 shares) and (iii) Mr. Ali Aamer Baxamoosa (100,000 shares).
5)In 2021, PKR 100 par value was converted in the ratio of 1:10 to PKR 10 par value.

Company’s milestones:

2005: Incorporation of Universal Network Systems (Private) Limited
2010: Started Digital Media Operation
2011: Commencement of Cash on Delivery Service and Brand Name “Blue-Ex” Commencement of International Air Freight Operations
2012: Partnered with “Aramex” – A leading logistics company in the Gulf Region and partnered with Shaheen Air as CGSA.
2014: Commencement of International Sea Freight Operations
2017: Launch of “BLUEKART” Ecommerce Platform
2018: Partnered with Serene Air as CGSA
2020: Countrywide outreach to over 650 cities & towns Started managing import cargo through Aramex. Achieved 3,000 plus online retailer partnerships.


Competitors
Partnerships:

1) Aramex
2) Serene Airlines
3) Bank Alfalah
4) National Foods
5) Meezan Bank
6) Pakistan Tobacco Company
7) METRO

Top 10 Customers
Funding Plan:

The purpose of the new issuance is to fund the Company’s expansion plans and improve the Company’s infrastructure facilities. After the pandemic hit in 2020, the demand for last mile logistics surged with the shift in consumer spending from orthodox shopping style to online shopping. UNS is looking to invest in in-house technology development and expanding its infrastructure to maximize its footprint across Pakistan.

Break-Up of Issue Proceeds and Utilization

Justification of Premium

Business risks and mitigants:

Internal risk factors:
Operational risk
Technology risk
Negative cash flow Risk
Credit and liquidity risk
Current ratio
Risk of non compliance with regulation of SECP and PSX

External risk factors:
Regulatory framework
Economic slowdown
Trade barriers
Foreign exchange risk
Procurement risk
Risk of under subscription

Financial performance:

Fixed price mechanism:
Accredited Investors Include:

1. Institutional Investors
2. Accredited individual investors registered with NCCPL having net assets of at least PKR 5 million

Subscription Mechanism

1.  A standardized Subscription Form has been prescribed by the Issuer and is available on websites of the issuer and Joint Advisors to the Issue.
2.  Those Accredited Investors who are interested to participate can submit their forms in person or through their representatives at the designated Bank(s).
3.  The Subscription Form can be submitted only during the Subscription Period prescribed by the Issuer. The subscription of shares shall remain open for two (02) working days on [.] and [.] between 9:00 AM to 5:00 PM.

Minimum Application Size and Payment Instructions

1.  The amount of a single application shall not be less than 500 Shares
2.  Application for shares must be made for 500 shares or in multiple of 500 shares only. Applications which are neither for 500 shares nor for multiples of 500 shares shall be rejected.
3.  Applications, which do not meet the above requirements, or applications which are incomplete will be rejected. The applicants are, therefore, required to fill in all data fields in the Application Form.
4.  The Company will credit shares in the CDS Accounts of the successful applicants.
5.  The pay order/cheque shall be made in favor of Universal Network Systems Limited – Subscription Form.

Close of Subscription Period and Allocation of Shares

1.  Upon close of the Subscription Period and in case of oversubscription, the allocation of shares will be made on pro-rata basis.
2.  The Issuer will be required to finalize the allocation within three (03) working day of the close of Subscription Period and communicate the same to the Accredited Investors.
3.  Any refund (if required) will be made to the Accredited Investors within five (05) working days of the close of Subscription Period.

Share price:

The company is aiming to issue 6,857,000 ordinary shares at a fixed price of Rs. 65/- per share to accredited investors as per applicable rules of PSX for the GEM Board. The subscription is scheduled for November 17–18, 2021.




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