PSX extends book-building by a day

Is offering 20% stake to high net-worth individuals and institutional investors

KARACHI: The Pakistan Stock Exchange (PSX) has extended its book-building process by a day till Thursday as it seeks to sell 20% of its stake to high net-worth and institutional investors.

The process, originally slated to run on June 6 and 7, will now end on June 8. The floor price was set at Rs28 per share.

In the first two days, however, the PSX received bids in the range of Rs28-30.80 per share totaling 131.14 million shares. The offer is currently undersubscribed.

Out of a total 160.29 million shares (20% stake) on sale, the PSX would offer 120.22 million shares (75% of 160 million shares) to high net-worth individual and institutional investors at a final price to be determined through the bidding (book-building) process.

Later on, it would offer the remaining 40.074 million shares (25% of 160 million shares) to retail investors at the determined price.

The floor rate is the price at which PSX divested 40% (320 million shares) to a Chinese consortium through competitive bidding in December 2016. As per the laws in place, the PSX is to divest a total of 60% shares (under 480 million shares) of the issued 100%, or 800 million shares, in the current month (June).

The divestment would culminate the process of PSX corporatisation, demutualisation and integration.

Earlier in January 2016, three local stock exchanges namely Karachi Stock Exchange (KSE), Lahore Stock Exchange and Islamabad Stock Exchange were integrated to form the Pakistan Stock Exchange.

Published in The Express Tribune, June 8^th, 2017.

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