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December 19, 2024
Pakistan Stock Exchange (PSX) Lahore team along with Consultant to the Issue (CTI) Integrated Equities (Pvt) Ltd. (IEL), represented by Sardar Ali Wattoo, held an Investor Awareness Session for Pak China Joint Chamber of Commerce & Industry, Lahore. The session was held with the Executive Committee and other member companies of Pak China Joint Chamber of Commerce and Industry, Lahore. The Senior Vice President of the Pak China Joint Chamber of Commerce and Industry commenced the session by welcoming and thanking the PSX team and the CTI representative. He explained that the session aimed to educate member companies about Pakistan Stock Exchange (PSX) and the capital market ecosystem.
The PSX team elaborated on the listing process, emphasizing its two boards—the Main Board and the GEM Board. It was highlighted that PSX supports investors through capital gains, bonus shares, and dividends, while companies benefit by raising capital for their growth and expansion. The Regional Business Development Lead (RBDL) PSX explained the requirements for listing, including being a public limited entity with a minimum paid-up capital of PKR 25 million, maintaining two years of audited accounts, having at least seven directors, and offering securities through fixed-price or book-building methods. Companies listed on the GEM Board must form an audit committee, including having at least one-woman member on their boards, within two years of listing. RBDL PSX also outlined the benefits of listing on PSX, such as raising long-term capital, enhancing debt limits, improving company profiles, ensuring business continuity for family-owned businesses, cost-effective fundraising, and brand building.
The IEL representative detailed the CTI’s role in guiding companies through the listing process. He stressed the importance of corporate governance, compliance, and hiring competent CFOs or fractional CFOs, particularly for start-ups. He noted that many businesses face challenges related to capital structure and taxation, whereas CTIs assist in overcoming these by conducting internal reviews, restructuring balance sheets, and preparing prospectuses. He cited examples like Interloop Limited, which took two years to prepare for listing through restructuring and compliance, and Stylers International Limited, whose valuation increased from PKR 5 billion to PKR 22 billion post-listing.
During the interactive Q&A session, participants raised several queries, including:
CFO/Fractional CFOs: Sardar Wattoo explained how fractional CFOs are currently supporting companies in preparing for listing. CTIs can introduce these professionals to start-ups.
Fear of Listing:He encouraged start-ups to focus on taxation, corporate governance, and transparency, emphasizing the significant valuation benefits of listing.
Trust in Government Investments: The participants questioned the reliability of government-led investments. The PSX team clarified that the government is raising capital through sukuks auction (GIS) based on maturity rates.
Fees for Listing and CTI Services: The costs associated with listing and CTI services were also addressed.
The session was highly interactive, with the PSX team and Sardar Ali Wattoo addressing all queries effectively. It concluded with valuable insights into the listing process, its benefits, and the importance of compliance and effective governance for business growth.
