KARACHI - Lucky Cement has announced its Global Depositary Receipts (GDR) and managed to raise $109.3 million (Rs7.21b) against target of $150 million (Rs9.9b). Each GDR was priced at $7.28, containing 4 ordinary shares of the company, therefore, pricing each share at $1.82 (Rs120). Lucky has issued the results of the book building process of the GDR issue through a notice to KSE on Thursday. According to the notice, the GDR will be listed on the London stock exchange for trading on the professional securities market. The GDR came at a discount of 9.1pc from company's Wednesday's closing of Rs132/share and 12.4pc to the last 30-day average price of Rs141/share. The existing paid-up capital of Rs263.4m has been increased to Rs323.5m (a rise of 23pc). The amount raised is targeted to finance capital expenditure for two additional production lines of 4,200 tons per day (2.5mn tons per annum) each, in the company's southern plant. Expansion work on one of the lines has already started and the company's management expects it to start producing clinker by Nov 2008. The company has acquired a new loan of Rs2.5 billion in 2QFY08 to finance their expansion in the southern plant because of the delay in GDR issue. It is believed that , this loan along with GDR proceeds would be enough for company's capital requirements for expansionary purposes Lucky's GDR is the seventh international offering by any Pakistani company. Taking a look at the GDRs of MCB and UBL, the prices of these issues were not predetermined. Factors like prevalent share price, order book strength, price limits by investors, over subscription and GDR's expected market performance were considered in valuing the GDRs final price. In case of MCB, US$150mn GDR was priced at US$17.4 per share (Rs264 per share, 1GDR = 4 ordinary shares) and was valued at 0.5 per cent premium to 10-day VWAP (Volumetric Weighted Average Price) and 2.98 per cent discount to the last day closing price (before its offering date) at the local bourses. The issue was oversubscribed by 5 times. While in case of UBL, GDR's price was approved at US$12.9 (Rs195 per share 1GDR = 4 ordinary shares) and represented a 2.6 per cent premium over its average 30 day price and a discount of about 5.3 per cent to its last day closing price of Rs206 per share. The issue was oversubscribed by 4 times. As mentioned earlier, Lucky is the second Pakistani cement company to issue GDR. The company has successfully raised US$109.3mn through the issuance of 15mn GDRs, each representing 4 ordinary shares. Each GDR was priced at US$7.28 which is equivalent to Rs480 (Rs120 per ordinary share). The issue was oversubscribed by more than 2.5 times. With this issue, the outstanding shares of the company will increase by 66.05 million shares to 323.5 million shares and this will translate into earnings dilution of 23pc. Lucky's GDR price represents a discount of 16 per cent over its one month average price, a discount of 14.7 per cent over its two month average price and a discount of 9.1 per cent to its Wednesday's closing of Rs132.