Pakistan stock market IPO soon

Dubai - Country receives two concrete international offers for the initial public offering Pakistan Stock Exchange

Pakistan has got two concrete international offers for the initial public offering (IPO) of recently merged Pakistan Stock Exchange (PSX) and the decision will be taken in the next couple of weeks, finance minister Ishaq Dar has told Khaleej Times.
PSX was established on January 11 after the merger of individual stock exchange's of Karachi, Lahore and Islamabad. Its 100 index reached a record level of 39,390.21 points on last closing and witnessed a 20 per cent increase compared to December 31, 2015 closing at 32,816.31 points.
Securities Exchange Commission of Pakistan and PSX are working on the IPO and things would be moving soon, Dar said.
Mentioning about the recent meeting of the stakeholders, the minister said: "We have received two-three concrete offers from leading stock markets of different countries. He didn't mention the countries name but media reports said Turkey is one of them.
Pakistan plans to sell a 40 per cent stake in its stock exchange in coming months and Turkey's Borsa Istanbul has expressed some initial intend, Reuters reported quoting PSX managing director Nadeem Naqvi.
The government has different plans to privatise the PSX including offering shares to Pakistan financial institutions but not more than five per cent, he informed. The minister assured settlement of the process in the next couple of weeks.
Earlier, the minister took credit of the PSX merger and said: "This government managed to make it happen and 15 years old dream became true this year."
The Wall Street Journal in its recent report said Pakistan is among the most profitable markets for the foreign investment. It said Pakistan is a 'Star Pick' for foreign multi-billion dollar companies to invest.
The report added that Pakistan has attracted vast investments in the last five months. During this time the net worth of Pakistan Stock Exchange has increased by 20 per cent in US dollars.
Meanwhile, International financial market analysis firm BMI in its recent report has said that Pakistan will be developed as manufacturing hub over the coming years.
Data compiled by ETMarkets.com shows the investors could have made three times more money by betting on the Karachi Stock Exchange's KSE30 index than on Bombay Stock Exchange's Sensex.
The KSE30 has given 18 per cent returns so far this year through July 12, making it the best-performing Asian index. Compared with that, the BSE Sensex has given just six per cent return in the same period.
Last June, Morgan Stanley Capital International (MSCI), the US equity indices provider, has included Pakistan Stock Exchange in its benchmark emerging-market index that is likely to attract multimillion dollars of portfolio investment in the Asia's best performing market.
"The MSCI Pakistan Index will be reclassified to emerging markets status, coinciding with the May 2017 semi-annual index review," MSCI said in its annual review meeting. "PSX would be inducted in the EM Index in June 2017."
Analysts have come up with varying estimates for inflows to the PSX expected in the medium term, such as JPMorgan Chase ($220 million), BMA Capital Management ($300-$400 million), EFG Hermes Holding SAE ($475 million), Intermarket Securities ($300 million), AKD Securities ($500 million), Elixir Securities ($250-$500 million), Taurus Securities ($300-$400 million), Topline Securities ($600 million) and KASB Securities ($700-$800 million).
- abdulbasit@khaleejtimes.com