The Pakistan Stock Exchange, Monday, organized a special Gong Ceremony to commemorate the achievements of CPEC and the successful listing of Service Long March Tyres Limited on PSX that attracted strong investors’ response during book building and general public subscription phases.
PSX holds gong ceremony to mark successful listing of SLM, achievements of CPEC
KARACHI, Jun 15 (APP): The Pakistan Stock Exchange, Monday, organized a special Gong Ceremony to commemorate the achievements of CPEC and the successful listing of Service Long March Tyres Limited on PSX that attracted strong investors’ response during book building and general public subscription phases.
The SLM IPO attracted over 35000 applications from a diverse range of institutional and individual investors across the Book Building and Retail segments- both oversubscribed- while the transaction raised Rs 7.78 billion, said a statement issued here.
The gong ceremony was attended, virtually, by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb while Managing Director and CEO of PSX Farrukh H. Sabzwari, SECP Commissioner Ali Farid Khwaja, Executive Vice President of China Financial Futures Exchange and Shareholder Director PSX, YOU Hang, CEO Service Long March Tyres Omar Saeed, CEO Arif Habib Limited Shahid Ali Habib and Chairman PSX Ruhail Muhammad expressed their views.
The book building portion, initially comprising 292.3 million ordinary shares, was fully subscribed within five seconds and was oversubscribed by 16.7 times. The Retail portion, comprising 97.4 million ordinary shares, was oversubscribed by 7.6 times and attracted over 33000 applications. The overwhelming response underscores the increasing depth, maturity, and growing participation of investors in Pakistan’s equity capital markets.
The offering comprised a total of 389.7 million ordinary shares with a floor price of Rs 14.25 per share but robust demand during the book building process took the strike price to Rs 19.95 per share. Consequently, the transaction size increased to Rs 7.78 billion from Rs 5.55 billion at the floor price.
Commercial banks, mutual funds, development finance institutions, insurance companies, investment banks, pension and employees’ funds, brokerage houses, high-net-worth individuals, foreign investors, and retail investors participated in the IPO.
The Federal Minister for Finance and Revenue, in his address, highlighted the significance of the transaction for Pakistan’s capital markets and manufacturing sector and emphasized the importance of encouraging greater private sector participation in the capital market to support economic growth, industrial development, and investment mobilization in the country.
With 11 IPOs this fiscal year, investor confidence is ringing loudly from PSX and this IPO is a strong vote of confidence in Pakistan’s economy and its future trajectory, he said, encouraging the SLM leadership to bring more ventures from China to Pakistan, where the government stands ready to support and facilitate further investment.
Farrukh H. Sabzwari termed the ceremony as a landmark occasion for Pakistan’s capital market and remarked that the listing came at a time when Pakistan has just presented a positive federal budget, offering relief to the salaried class, reducing super-taxes, and introducing incentives for housing and business.
Despite global challenges, our markets remain resilient, with PSX touching Rs 21 trillion market capitalization, average daily trading value Rs 57 million and the third highest number of IPOs in 25 years, he added.
Ali Farid Khwaja, remarked that it was a special day for Pakistan as we celebrate both the success of CPEC and the listing of SLM. SECP is committed to enabling more companies to list and supporting PSX’s ambitious target of expanding the investor base fivefold to 2.5 million investors in the coming years, he said.
Mr YOU Hang, stated that SLM’s IPO demonstrated confidence in Pakistan-China cooperation, saying that the listing was not only a financial achievement but also a symbol of the deepening industrial and financial ties between our nations.
“SLM’s success is a model for future Chinese enterprises to list in Pakistan, reinforcing the enduring China-Pakistan friendship,” he remarked and reiterated commitment to promoting connectivity between the capital markets of both countries and supporting more high-quality cooperation projects.
Ruhail Muhammad remarked that the listing underscored the importance of China-Pakistan collaboration as CPEC moves into its second phase focused on industrial and financial integration.
