Daewoo Express: Will Be Listed On Pakistan Stock Exchange PSE Soon – Research Snipers

Daewoo Express: Will Be Listed On Pakistan Stock Exchange PSE Soon

daewoo express

In Pakistan investment opportunities are on the rise, because of the development in China-Pakistan Economic Corridor (CPEC) energy and transportation sectors are expected to grow fast. CPEC is expected to bring $55 billion of investment and loans in Pakistan yet alone in energy and transportation sector. This capacity building would enhance investment opportunities in Pakistan.

 

By envisioning this opportunity, Swedish Business man has bought 9.4% of share in Daewoo Express. This investment puts Daewoo Express third on the list which receives Foreign Direct Investment from Stockholm funds, after TPL and IBL holdings.

Tariq Shamoon, Portfolio manager of Tundra Fonder an asset management company based in Stockholm said, “Daewoo Express will be listed on Pakistan Stock Exchange (PSE) in April or May of this year, apart from the investments of Tundra Fonder the company will generate more cash through listing in PSE in order to finance its future plans and expansion.

Tariq Shamoon Told Express Tribune, “We feel huge potential and opportunities in Pakistan’s transportation sector which is still to be unfolded, As Pakistan’s economy is improving and disposal income is rising, travelling becomes vital and Daewoo should invest more on it.”

Tariq said a 15 to 20% growth in the company’s bottom-line (net earnings) should be expected as it prepares to cater to higher demand. The launch of the Multan Metro Service – that includes 35 buses providing transportation to an estimated 95,000 commuters daily in the first phase – and greater inter-city commute as Pakistan completes underdeveloped highways and road networks are likely to be the short-term triggers for the company.

“Tundra invested in Daewoo in September last year and the main reason of investment was that Daewoo needed cash for financing buses for the Multan metro project.”

“There is a lack of organised, safe transportation in Pakistan,” stated Mughal Senior ESG analyst in Tundra Fonder. “As the consumption capability of its citizens increases, Tundra believes Pakistanis will increasingly choose more organized transports, as in other more developed countries. Removing the safety concerns will also expand the potential traveler base to include children and women travelling alone.”