IPO amount declines 49 pc in 2018

Karachi, December 21, 2108: Initial Public Offering (IPO) amount raised in 2018 is some 49 percent lower than what was raised in 2017.

During 2018, 3 new stocks were listed (other than Modarbas) at Pakistan Stock Exchange (PSX) where the new entrants raised Rs4.3bn cumulatively, which is 49% lower than amount raised in 2017 of Rs8.5bn.

According to a report issued by Topline Securities AGP Limited (AGP), a pharmaceutical company, through its Offer For Sale (OFS) collected 65% of total raised capital during 2018.

Company offered 35mn shares, where OBS Pakistan and Muller & Phipps Pakistan sold 20mn and 15mn shares respectively.

Two other IPOs raised nearly equal amounts, that is, Matco Foods (MFL) raised Rs758mn while At-Tahur (PREMA) raised Rs770mn. To note, MFL is a basmati rice exporter while PREMA is operating in the dairy segment of Pakistan.

MFL remained top performing IPO with IPO to date return of 16% followed by AGP with of 1% return, while, PREMA showed decline of 6%.

Reportedly around 8 IPOs are scheduled for 2019 where the largest IPO is expected in the Textile Sector. Interloop Limited, one of the largest sock suppliers to world leading players like Nike, Adidas, Puma etc is planning to raise around Rs5bn to finance its expansion plans.

Other IPOs are expected from consumer, auto parts and pharmaceuticals segment among others.