Four companies raised a capital of Rs6.4 billion by listing Term Finance Certificates (TFCs) at the bourse in fiscal year 2011-12, according to a research note issued by InvestCap.
TFCs are usually listed to cope with capital expenditure; available to only institutional investors they offer higher returns than bank deposits and bonds. Askari Bank, Summit Bank, Engro Corporation and Pakistan Mobile Communications decided to list their TFCs.
On the other hand, equity markets stood feasible for Initial Public Offerings (IPOs) as four companies went public by listing their shares on the Karachi Stock Exchange during fiscal year 2011-12 compared to two IPOs witnessed by the stock market in fiscal year 2010-11.
Published in The Express Tribune, July 5th, 2012.
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