PHOTO: EXPRESS
BankIslami CEO and President Syed Amir Ali commenced the listing of the Sukuk worth Rs2 billion, which was inclusive of the green shoe option of Rs500 million. The IPO and listing was concluded by Next Capital.
Speaking on the occasion, Ali mentioned that these certificates were country's first-ever listed Additional Tier (ADT-1) Modaraba Sukuk.
He stressed that its popularity among potential investors could be gauged from the fact that the initial public offering (IPO) was oversubscribed by 1.07 times despite the Covid-19 pandemic lockdown in most parts of the world.
"The Ehad Sukuk IPO witnessed a remarkable response from online subscription channels with more than 80% applications received via e-IPO platforms," he said.
The Ehad Sukuk is cited to be fully paid-up, non-cumulative and contingent convertible Modaraba Sukuk certificates that will qualify as ADT-1 capital with its pre-IPO portion subscribed by 27 institutional investors and 45 individual investors.
Also present on the occasion, PSX Managing Director Farrukh Khan welcomed the listing of certificates at the bourse, saying there was dearth of Shariah-compliant debt instruments for investors.
He was of the view that the listing of Ehad Sukuk was a step in the right direction for providing investors with Shariah-compliant investment alternatives.
"Pakistan Stock Exchange is at the forefront of providing new avenues of investment, be it conventional or Shariah-compliant," he said, adding that the PSX aimed to provide a transparent and robust trading platform for investors.
Next Capital CEO Najam Ali said the response of investors to the IPO during the ongoing pandemic was very encouraging as it concluded with 127 applications, resulting in oversubscription.
Published in The Express Tribune, May 16th, 2020.
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