ADVICE FOR INVESTORS INVESTORS ARE STRONGLY ADVISED IN THEIR OWN INTEREST TO CAREFULLY READ THE CONTENTS OF THIS PROSPECTUS, ESPECIALLY THE RISK FACTORS GIVEN AT SECTION 5 BEFORE MAKING ANY INVESTMENT DECISION. SUBMISSION OF FALSE AND FICTITOUS APPLICATIONS IS PROHIBITED AND SUCH APPLICATIONS’ MONEY MAY BE FORFEITED UNDER SECTION 87(8) OF THE SECURITIES ACT, 2015. Investment in equity securities involves a degree of risk and investors should not invest any funds in this offer unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision. For taking an investment decision, investors must rely on the examination of the issuer and the offer including the risks involved as disclosed in Section 5 of this prospectus ENGRO POLYMER & CHEMCIALS LIMITED PROSPECTUS FOR ISSUANCE OF PREFERENCE SHARES Date and place of Incorporation: Karachi, October 20, 1997 | Incorporation number: K-07013 | Registered office: 12th Floor, Ocean Tower, G-3, Scheme No. 5, Block 9, Clifton, Karachi |Website: https://www.engropolymer.com/ | Contact Number: +92 21 111-411-411 & +92 21 35166853 | Contact person: Syed Faraz Abbas Jaffri; E-mail: [email protected] | Contact person: Muhammad Bilal Ahmed; E-mail: [email protected] Issue Size: This Issue consists of 300,000,000 Preference Shares of face value of PKR 10/- each out of which 262,500,000 Preference Shares of face value of PKR 10/- each (87.5%) have been offered to and subscribed by Pre-IPO investors and 37,500,000 Preference Shares of face value of PKR 10/- each are being offered to the General Public at an Issue Price of PKR 10.00/- per share. The Preference Shares shall be perpetual, cumulative, callable, convertible and non–voting. Dividend on the Issue will be payable half-yearly at the rate of 6 Months KIBOR + 3.5% and the payment of the same shall be at the discretion of Board of Directors and shall be in priority to ordinary shareholders. Method of offering: The Issue is being made through the Fixed Price Method at an Issue Price of PKR 10.00/- per share Public Comments: The Draft Prospectus was placed on PSX’s website for seeking public comments starting from October 21, 2020 to October 29, 2020, however, no public comments were received. DATE OF PUBLIC SUBSCRIPTION: From December 17, 2020 to December 18, 2020 (both days inclusive) From: 9:00 am to 5:00 pm CONSULTANT TO THE ISSUE BANKERS TO THE ISSUE Askari Bank Limited Bank Al Habib Limited Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited Soneri Bank Limited United Bank Limited Allied Bank Limited JS Bank Limited MCB Bank Limited UNDERWRITERS TO THE ISSUE Arif Habib Limited Topline Securities Limited Online applications can be submitted through Centralized e-IPO system (CES) of Central Depository Company of Pakistan Limited (CDC) and UBL e-IPO system. CES and UBL e-IPO system can be accessed via weblink www.cdceipo.com and http://www.ubldirect.com/corporate/ebank respectively. For details please refer to Section 12.5 of the Prospectus. Date of Publication of this Prospectus: December 10, 2020 Prospectus and General Public Subscription Form can be downloaded from the following websites: https://www.engropolymer.com/, http://www.arifhabibltd.com, www.psx.com.pk & www.cdceipo.com For further queries you may contact Engro Polymer & Chemicals Limited: Syed Faraz Abbas Jaffri; Phone: +92 21 35166853 & +92 21 111-411-411 (Ext: 340), E-mail: [email protected] and Muhammad Bilal Ahmed; Phone: +92 321 3691409; E-mail: [email protected], Arif Habib Limited: Syed Ali Ahmed; Phone: +92 21 3246 5891; E-mail: [email protected] and Saim Ahmed Shahab; Phone: +92 21 3243 3542; Email: [email protected] Underwriter(s): Arif Habib Limited: Syed Ali Ahmed; Phone: +92 21 3246 5891; E-mail: [email protected] & Topline Securities Limited: Saad Abdullah; Phone: +92 21 3530 3338; E-mail: [email protected] The Issue is proposed to be listed at the Pakistan Stock Exchange (“PSX”) Prospectus | Engro Polymer & Chemicals Limited UNDERTAKING BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER [.] WE, Mr. JAHANGIR PIRACHA, THE CHIEF EXECUTIVE OFFICER AND SYED ABBAS RAZA, THE CHIEF FINANCIAL OFFICER OF ENGRO POLYMER & CHEMICALS LIMITED CERTIFY THAT: 1. THE PROSPECTUS CONTAINS ALL INFORMATION WITH REGARD TO THE ISSUER AND THE ISSUE, WHICH IS MATERIAL IN THE CONTEXT OF THE ISSUE AND NOTHING HAS BEEN CONCEALED IN THIS RESPECT; 2. THE INFORMATION CONTAINED IN THIS PROSPECTUS IS TRUE AND CORRECT TO THE BEST OF OUR KNOWLEDGE AND BELIEF; 3. THE OPINIONS AND INTENTIONS EXPRESSED THEREIN ARE HONESTLY HELD; 4. THERE ARE NO OTHER FACTS, THE OMISSION OF WHICH MAKES THIS PROSPECTUS AS A WHOLE OR ANY PART THEREOF MISLEADING; AND 5. ALL REQUIREMENTS OF THE SECURITIES ACT, 2015; THE DISCLOSURES IN PUBLIC OFFERING REGULATIONS, 2017 FOR PREPARATION OF PROSPECTUS, RELATING TO APPROVAL AND DISCLOSURES HAVE BEEN FULFILLED 6. NO CHARGES, FEE, EXPENSES, PAYMENTS ETC. HAVE BEEN COMMITTED TO BE PAID TO ANY PERSON IN RELATION TO THIS PUBLIC OFFERING EXCEPT FOR THOSE AS DISCLOSED IN THE PROSPECTUS. For and on the behalf of Engro Polymer & Chemicals Limited -Sd- -Sd- ___________________________ ___________________________ JAHANGIR PIRACHA SYED ABBAS RAZA Chief Executive Officer Chief Financial Officer 1 Prospectus | Engro Polymer & Chemicals Limited Glossary of Technical Terms ACT Securities Act, 2015 AHL Arif Habib Limited BVPS Book Value Per Share CAGR Compound Annualized Growth Rate CDA Central Depository Act, 1997 CDC / CDCPL Central Depository Company of Pakistan Limited CDC Regulations Central Depository Company of Pakistan Limited Regulations CDS Central Depository System CES Centralized e-IPO System COI Certificate of Incorporation Companies Act Companies Act, 2017 Commission / SECP Securities and Exchange Commission of Pakistan CRO Company Registration Office CUIN Computerized Unique Identification Number CVT Capital Value Tax DCS Distributed Control System DMT Dry Metric Ton DSCR Debt Service Coverage Ratio DSQ De-superheating Quench column EDC Ethylene Dichloride ENGRO Engro Corporation Limited EPCL Engro Polymer & Chemicals Limited EPS Earnings Per Share ESD Emergency Shutdown EU European Union EVTL Engro Vopak Terminal Limited FBR Federal Board of Revenue FED Federal Excise Duty FFA Free Fatty Acids GDP Gross Domestic Product GIDC Gas Infrastructure Development Cess GOP Government of Pakistan HCL Hydrochloric Acid HW Honey Well IDC Interest During Construction IFC International Finance Corporation ITO Income Tax Ordinance, 2001 KT Kilo Ton 2 Prospectus | Engro Polymer & Chemicals Limited LABSA Linear Alkyl Benzene Sulphonic Acid Mn Million MT Metric Ton MW Megawatt NICOP National Identity Card for Overseas Pakistani NOC No Objection Certificate pH Potential of Hydrogen PKR or Rs. Pakistan Rupee(s) PMT Project Management Team PSX / Exchange Pakistan Stock Exchange Limited PVC Poly-Vinyl-Chloride RLNG Regasified Liquefied Natural Gas SAP Systems Applications and Products SCRA Special Convertible Rupee Account SSGC Sui Southern Gas Company Limited SEPA Sindh Environmental Protection Agency SST Sindh Sales Tax TCC China Tianchen Engineering Corporation TDR Term Deposit Receipt TDS Total Dissolved Solids UAE United Arab Emirates UIN Unique Identification Number USA United States of America USD United States Dollar VCM Vinyl Chloride Monomer WHT Withholding Tax 3 Prospectus | Engro Polymer & Chemicals Limited DEFINITIONS Application Money The amount of money paid along with application for subscription of preference shares which is equivalent to the product of the Issue Price per share and the number of preference shares applied for Centralized E-IPO System In order to facilitate investors, the Central Depository Company of Pakistan (“CDC”) has developed a Centralized e-IPO System (“CES”) through which applications for subscription of securities offered to the general public can be made electronically. CES has been made available in this Issue and can be accessed through the web link (www.cdceipo.com). Payment of subscription money can be made through 1LINK’s member banks available for CES, list of which is available on above mentioned website. For making application though CES, investors must be registered with CES. Registration with CES is one time, free of cost and can be done under a self- registration process by filling the CES registration form, which is available on the above mentioned web link 24/7 all around the year. Investors who have valid Computerized National Identity Card (CNIC), bank account with any of the commercial banks, email address, mobile phone number may register themselves with CES. CDS account (Investor account or sub account) is not mandatory for subscription of securities through CES. Investors who do not have CDS account can opt for IPO facilitation account. For further guidance and queries regarding CES and opening of CDS account, investors may contact CDC at phone number: 0800 – 23275 (CDCPL) and e- mail: [email protected] or Mr. Farooq Ahmed Butt at phone number: 021- 34326030 and email: [email protected] Company Engro Polymer & Chemicals Limited Company’s Legal Advisor Mohammed Yakoob Kapadia Commission Securities & Exchange Commission of Pakistan (“SECP”). Consultant to the Issue Any person licensed by the Commission to act as a Consultant to the Issue. Arif Habib Limited has been appointed as Consultant to the Issue. Demin Water Train It is the unit to produce demineralized water which essentially means reduction of TDS (No dissolved solids) and is achieved through the principle of ion-exchange method Direct Issuance Other than right share issuance under Chapter IV of the Companies (Further Issue of Shares) Regulations, 2020 e-IPO facility e-IPO is submission of application for subscription of securities electronically through internet, Automated Teller Machines (ATM) and mobile phones. In 4 Prospectus | Engro Polymer & Chemicals Limited order to facilitate the public during IPOs, SECP has introduced the concept of e-IPO. The following two systems are available for e-IPOs: I.