PSX book building under-subscribed by 17pc

KARACHI

The Initial Public Offering (IPO) of Pakistan Stock Exchange (PSX) Ltd has been under-subscribed by (17pc) 133.08 million shares on its last day against an offer of 160.29 million shares on Thursday.

The PSX received bids of 133,089,370 shares worth Rs 3.726 billion approximately. The bid offers of these shares were received in the range of Rs 28- Rs 30.

The amount of the book building would be distributed among 200 listed brokers (who owned these shares before the demutualization of the stock markets).

This Offer consists of 160,295,320 Ordinary Shares (20% of the total paid up capital) of face value of PKR 10/- each. The entire issue will be offered through Book Building at a Floor Price of PKR 28/- per share.

Initially, 75% of the issue size of 120,221,320 Ordinary Shares will be allotted to Successful Bidders and 25% of the issue of 40,074,000 Ordinary Shares will be offered to Retail Investors at the Strike Price. Any un-subscribed retail portion will be allocated to Successful Bidders on a pro-rata basis.

The remaining 25 per cent or 40,074,000 shares will be offered to retail investors/General public at a strike price determined through Book Building on June 9th and 12th (Friday and Monday).

In view of investors’ interest observed in PSX divestment process, the Securities and Exchange Commission of Pakistan (SECP) had allowed extension in time for the book building to offer for sale of shares of the PSXL for one day i.e. upto Thursday, June 8, 2017.

MCB Bank was the book runner, while joint consultants were AKD Securities Ltd, BMA Securities, Elixir Securities, Inter-market securities, JS Global Securities, Next Capital and Topline Securities.

In December 2016, the Pakistan Stock Exchange (PSX) had already sold 40 per cent strategic shares to a Chinese consortium that made the highest bid of Rs 28 per share for 320 million shares on offer. The value of the transaction is calculated to be Rs 8.96 billion ($85 million).