A leap of faith

The young sponsor was sitting alone in his office. It was way past the regular office hours and he was sitting there thinking about his two closest business friends who had already taken their companies public couple of years ago and were doing very well.

He had been afraid to join them in launching the IPO of his own company. Somehow, when he had gone over the financial reports and decided to take a step closer to making the final decision, a sense of fear had overwhelmed him.

The vast unknown of the stock market stretched before him, and at that moment, it seemed like such a long fall if he failed—millions of rupees along with his reputation at risk. He felt certain that his business wasn’t ready for such risky exposure; so he pulled away from the idea of listing, retreating to his familiar routine and decided to stay in the comfort of private ownership.

Even when his friends, whose businesses were far smaller and had fewer assets than his own business, successfully did their IPOs and moved forward with ease, he still couldn’t muster up the courage to take that same bold leap of faith, which to him seemed so risky.

The night had passed and the sun was rising higher, warming his office as the clock ticked on. The pressure of his company’s future weighed heavily on him, made worse by the fact that they hadn’t brought in new capital since their last investment round years ago.

His financial resources were dwindling with each passing day. He’d reviewed every part of his business strategy, squeezed out every last efficiency he could, but the numbers still wouldn’t stretch far enough. He even considered selling off personal assets, but that felt like he was sacrificing a part of himself for something that might fail.

“Come on, just one more investment,” he pleaded with his father, hoping he would give him a lifeline. “It’s time to take the leap!” his father replied, his tone sharp. But he kept asking for help, and after a few moments, his heart leapt in hope.

His father appeared to reconsider, preparing to offer one final piece of advice or even some capital. He leaned in eagerly, on the edge of signing another deal, inching closer to the safe path. But just as his father was about to give him what he needed, his father stopped.

His words hung in the air, just out of reach. He hesitated, confused, wondering why he didn’t follow through, but then, driven by the pressure of his falling reserves, he lunged forward. He had no choice now but to act—whether to accept or to take that daring leap into the IPO.

In this version, the young sponsor struggles with fear of taking his company public, mirroring the seagull’s hesitation to fly in the original story. The IPO represents the high-stakes decision that requires courage to risk failure, much like the seagull’s flight over the daunting sea.

A wave of overwhelming fear again gripped him. His mind racing, his heart pounding as he sat at his desk, staring at the IPO documents. The idea of putting everything on the line terrified him. The noise of the bustling stock exchange, the scrutiny of analysts, the investors’ expectations—it all swirled in his head. But the moment passed.

Suddenly, the fog of uncertainty lifted, and he decided to take the leap of faith. He selected AKD Securities Ltd. as his financial advisor, signed off on the prospectus (and other legal documents), and initiated the listing process.

The following ten to twelve weeks passed quickly, with both the PSX and the SECP granting their respective approvals. During this time, the sponsor engaged in numerous meetings with his advisors, who persuaded him to opt for a conservative valuation. The rationale was to "leave something on the table for the investor as well," emphasizing that the deal should be a win-win for both sides involved.

While these discussions were ongoing between the sponsors and the advisors, the stock market was experiencing a significant downturn due to rising political instability.

Several friends advised him not to take his company to public or to delay the book-building process until the market recovered, for better valuations.

However, the financial advisor urged him to continue moving forward, advising against waiting for the market to improve, with the advisor stating “You don’t need to score a century on your debut—just like Kamran Ghulam or the Little Master Hanif Muhammad."

The financial advisor told and convinced him that price discovery at the stock exchange is a dynamic process .

This was followed up by over 3 dozens one on one meetings with potential HNWs and institutional investors.

As the registration period started and book-building day arrived, the initial turnout on the first book building day was bleak, causing anxiety. But the real action unfolded on the final day.

Despite the strike price remaining unmoved from the floor rate, total value of pay orders far exceeded the amount offered. Strangely, many investors refrained from placing bids themselves, mistakenly believing it was the financial advisor's / Book Runner’s responsibility to submit bids on their behalf. Additionally, some investors did not revise their bids upward due to a lack of understanding of the system.

As a result, while they participated in the book-building process, they ultimately were not among the successful bidders.

When the final hour approached, investors began revising their bids, with fear of being kept out of the race if they don’t act quickly, resulting in the system slowing down under pressure in the last few minutes.

Then, like a seagull flapping its wings and starts soaring, the price suddenly started to surge. In a dramatic turn, it jumped to close at 30% above the floor price during the final seconds of the bidding activity on the trading floor.

The atmosphere at the book runner's control room was electric, with 20 screens buzzing as bids poured in at a tremendous pace.

Seeing his company’s strike price, the sponsor felt a strange, exhilarating rush—a kind of freedom he had never experienced.

He was not falling into the ruins, as he had feared. Instead, he was rising, steadily moving upward. For a brief moment, everything felt surreal, as though it was happening too fast.

He had done it, finally. He had taken the leap of faith. His company’s stock finally been valued and taken public successfully.

He stood from his desk, feeling lighter than ever.

His colleagues and advisors called on to congratulate him. Other business friends, the same ones who had gone public before him and the ones who advised him not to go for listing , reached out, acknowledging his success.

He had made it. He wasn’t just surviving—he was soaring, higher than he had ever imagined.

In this conclusion, the sponsor finally overcomes his fear and successfully takes his company public. The exhilaration he feels mirrors the young seagull’s joy at finally learning to fly. The fear of falling is gone, and he’s free to soar in the business world, just as the seagull takes to the skies in the original story.

Based on the novel "His First Flight" by Liam O'Flaherty