Pakistan Stock Exchange to introduce E-IPO system

Project will digitally transform IPO process at bours

KARACHI:

The deployment of a new E-IPO system at the Pakistan Stock Exchange (PSX) will open new vistas and expand horizons for the investors desiring to invest in new share listings through the convenience of a few clicks, said PSX MD and CEO Farrukh Khan.

According to a statement issued on Tuesday, the PSX and the National Institutional Facilitation Technologies (NIFT) signed an agreement to collaborate in the development of a new payment and registration system for the bourse.

Speaking at the signing ceremony, Khan said that the system would steer digitalisation for investors at the front end and would also enhance the outreach for the PSX, issuers and investors in terms of the initial public offering (IPO) process as a whole.

“The connectivity that this system ensures among investors, share registrars, brokers, banks and gateway firms like NIFT and CDC is a great step forward for the Pakistan Stock Exchange,” he said.

The digital portal will provide facilities to investors (local, foreign and institutional), TRE certificate holders and even banks for submitting online subscription applications from anywhere in the world through the internet. Speaking on the occasion, NIFT CEO Haider Wahab said the economic outlook for Pakistan was strong in 2021 and beyond with positive sentiment in the stock exchange and the regulator was geared to provide state-of-the-art digital products and services to local investors.

The PSX is developing the system for the capital market and its participants to digitally transform the IPO process through the E-IPO project. E-IPO will be an automated system connecting investors and share registrars with brokers/ TRE certificate holders and banks through payment gateways including NIFT and share custodial company CDC.

“We are excited to be part of PSX initiative to bring ease of participation in IPOs through digital means,” he said.

The official added that NIFT ePay would help investors make online payments for all the E-IPOs with a secure and seamless payment experience directly from their bank accounts. According to him, the system will expand potential investors’ ability to digitally participate in an IPO.

He was of the view that the E-IPO system would not only revolutionise the way investors and other market participants take part in the IPO process but would also go a long way towards digitalising the IPO subscription process in Pakistan.