LAHORE: As the year end looms, Pakistan Stock Exchange has had its fair share of achievements and heartbreaks, but a Topline Security report has highlighted the major initial public offerings (IPOs) of 2017 and the ones expected in 2018.
In June, PSX celebrated its re-inclusion into MSCI emerging market (EM) index and saw the stock market attaining all-time high of 52,876 points on May 24th, 2017.
Post-MSCI EM inclusion, PSX since then experienced a turbulent run due to political and economic uncertainty which has gripped the country since a verdict by the apex court on Panamagate which led to the ouster of ex-Prime Minister Nawaz Sharif.
During 2017, 3 IPOs worth Rs8.6 billion were witnessed (excluding modarabas) and last year three IPOs were able to raise over Rs4.2 billion respectively.
Pakistan Stock Exchange become one of the first self-listed stock exchanges globally by raising Rs4.49 billion via floatation of 160.3 million shares at a floor price of Rs28 per share.
This issue constituted 20 per-cent of PSX’s stake, since 40pc of it had already been sold to a Chinese syndicate.
The second largest IPO of the year on PSX was attributable to Roshan Packages Limited, a packages company which raised Rs2.8 billion via floatation of 32.5 million shares at Rs35 per share.
And third IPO in 2017 was of steel maker Ittefaq Iron Industries which raised Rs1.26 billion via floatation of 41.75 million shares at a floor price of Rs12 per share.
Three companies delayed their IPO’s during 2017 included Inbox Technologies due to political uncertainty in July this year. It aims to issue 45.4 million shares (39pc of post IPO capital) at a floor price of Rs30sh for investment in project assets and working capital needs.
Others included, Dalda Foods, a cooking oil brand, will issue 82.5m shares via a book-building process at the floor price of Rs85 per share. Money raised via the IPO would help it in expanding the Phase-II seed extraction plant which will enlarge its seed crushing capacity by additional 500 tonnes a day.
AGP Pharmaceuticals plans to get itself listed on the stock exchange and will be offering 35m shares at a floor price of Rs40 per share which constitutes 12.50pc of its total paid up capital.
Topline Security analyst, Adnan Sami said more five more IPO’s are in the pipeline for 2018, which include TPL Life Insurance wanting to float 40 million shares at floor price of Rs10 per share, Towel Maker Hira Terry Mill floating 25 million shares at floor price of Rs23 per share, Matco Foods plans on issuing 29.1 million shares at Rs26 per share.
Also, Unicol Ltd, an ethanol producer intends to float 37.5 million shares at a floor price of Rs24 per share and Liberty Power Tech is planning an IPO by floatation of 126.1 million shares at Rs40 per share.
