PSX reports 8 initial public offerings in FY21

Web DeskWeb Editor

30th Jun, 2021. 09:02 pm

KARACHI: A total of eight Initial Public Offering (IPO) transactions were witnessed at the equity market during FY21, aided by a stark turnaround in the economy post-initial outbreak of the Covid-19 pandemic.

Total transactions included seven new listings, The Organic Meat Company, TPL Trakker Limited, Agha Steel Industries Limited, Panther Tyres Limited, Service Global Footwear Limited, Citi Pharma Limited and Pakistan Aluminum Beverage Cans Limited, and one preference share issuance (Engro Polymer and Chemicals Limited).

The companies listed on the Pakistan Stock Exchange (PSX) managed to raise equity worth Rs20 billion in FY21, highest-ever capital raising. This also marks the highest number of capital raising transactions (IPO’s and preference share issuances) in 14 years (last high was 12 transactions in FY07).

The liquidity flush in the market, with order book for all IPOs generated a demand of Rs44 billion against Rs20 billion raised, translating to a 2.2x oversubscription for new listings at the index.

Besides, a debt IPO was also executed during FY21. Bank Alfalah Limited issued a Term Finance Certificate (TFC) to raise up to Rs11 billion.

Overall, the benchmark KSE-100 posted a 38 per cent return (43.5 per cent in dollar terms) in FY21, compared with a meager 1.5 per cent in FY20.

The index closed at 47,356 points, gaining a massive 12,934 points during the fiscal year as against a slight gain of 520 points in FY20. Similarly, the average traded volumes in FY21 stood at 528 million shares, compared with 196 million shares traded in FY20.

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