First PSX listing of new fiscal year approved

The Securities and Exchange Commission of Pakistan (SECP) has approved the issuance, circulation and publication of prospectus for the initial public offering of Tasdeeq Information Services Limited, marking the first IPO clearance for fiscal year 2026-27.

The approval comes after the regulator's new management, which assumed office in February 2026, accelerated the processing of public offerings. Ten companies listed on the Pakistan Stock Exchange during the previous fiscal year, raising a combined Rs18.39 billion. "The listing number was a two-decade high," highlighted Shankar Talreja, Director Research at Topline Securities.

Tasdeeq is a credit bureau licensed by the State Bank of Pakistan. It collects, maintains and disseminates credit information about individual and commercial borrowers for member financial institutions, enabling lenders to assess risk and make informed decisions. The company also offers a consumer-facing application that allows individuals to check their own credit scores.

Under the approved structure, Tasdeeq will offer 150 million ordinary shares at a face value of Re1, representing approximately 15.79% of the post-IPO paid-up capital. The issue will be conducted through the book-building method at a floor price of Rs1.90 per share, with a maximum price band of about 57.89% above the floor, or Rs3 per share.

Seventy-five per cent of the issue, or 112.5 million shares, is reserved for institutional investors and high-net-worth individuals. The remaining 25%, amounting to 37.5 million shares, will be offered to retail investors at the strike price determined through book building. The retail portion is fully underwritten. In a parallel pre-IPO placement, minority shareholders have agreed to sell 69 million ordinary shares, equivalent to roughly 7.26% of the post-IPO capital, at Rs2.35 per share. The transfer of these shares is scheduled within five working days after the general public subscription, subject to final regulatory clearances.

Topline Securities is acting as the lead manager and book runner. The draft prospectus had been placed on the Pakistan Stock Exchange website in late June for public comments.

Market participants view the listing as significant beyond just raising capital. Mohammed Awais Ashraf, Director of Research at AKD Securities, noted that an SBP-regulated credit bureau strengthens the shift from collateral-based to data-driven lending. By processing borrower histories and generating credit scores and analytics, such infrastructure improves screening and supports automated loan decisions, particularly for individuals.

Pakistan's equity market has outperformed regional peers and other asset classes for a third consecutive year in FY26, supported by greater political stability and improving macroeconomic indicators. The re-rating has revived interest in public listings. Ashraf said a growing IPO pipeline deepens the market, expands investment choices and reinforces investor confidence even when raising capital remains the primary objective for the issuers.

Shankar Talreja stressed that the listing is encouraging for companies that want to access the equity market because valuations are attractive. "Some need growth capital, some need working capital, and the overall impact on economic activity is positive," he said.

Zirar Khalid, who covers the credit market at Topline, explained the company's core function in practical terms. Whenever banks, microfinance institutions or digital lenders such as easypaisa evaluate a loan application, they typically request a credit report from Tasdeeq. The firm maintains extensive data on individuals and businesses and operates an application that allows consumers to view their own credit standing. The regulator said recent reforms, streamlined requirements, faster approvals and greater digitalisation have lowered barriers for companies seeking listing at the bourse. As part of its capital-market development agenda, the SECP continues to hold nationwide IPO roadshows in collaboration with market stakeholders to educate potential issuers on the listing process and the benefits of raising equity through the stock market.