K-Electric IPO raises Rs2b

KARACHI:

K-Electric (KE) concluded the initial public offering (IPO) on September 3, attracting 2.2 times more bids than its target of Rs2 billion to meet its operational and working capital requirements.

"The IPO was oversubscribed by 2.2 times," Moonis Alvi, the KE CEO, said.

KE Retail Sukuk saw participation from over 600 retail applicants and institutional investors. The pre-IPO phase, amounting to Rs1 billion, was specifically tailored for KE's industrial and large commercial consumers, as well as high-net-worth individuals. The Sukuk offers the option of bill adjustments against monthly profits for KE's residential and commercial consumers.

"We need innovation as we're playing catch-up," PSX MD and CEO Farrukh H Sabzwari said. "We have a low number of retail investors, even though they can start investing with just Rs5,000. Now, we're comparing ourselves to Sri Lanka and Bangladesh, whereas we were in comparison with India 10 to 15 years ago."