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Private companies going public in Pakistan (IPO)… One after another

From the beginning of FY20-21, it is observed that private companies are raising money through Initial public offering or going public. And the most unexpected thing is the public’s overwhelming response and oversubscription against the number of shares offered. Unpredictably, these local corporate giants are raising funds through IPO despite the economy getting severely impacted from the pandemic disaster and people facing unprecedented challenges created after coronavirus outbreak.

What is going public or “IPO”

Our Corporate Sector is on the go. Since PTIs taking over the setup, many young companies and reputable corporate giants have announced going public. Going public or Initial Public Offering is a process in which a private company needs to raise capital, for future expansions, by offering its shares to the public, thus the private company turned public limited or publicly-traded entity.

As far as the assistance required for an IPO it is a technical process of the book-building process in which an underwriter company, financial and brokerage consultants, determine the types of securities and appropriate time with the share price.

Also Read: Now FBR Watches Your Bank Account Transactions

How to purchase these private limited company shares?

This process is also called the process to subscribe to shares where any individual who has a current account and a CDC (Central Depository Company) investor account can participate in an IPO through physical or electronic submission of Public Subscription Form (PSF).

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IPO is a risky investment because no ordinary person can predict the share market movement.

Our readers or anyone interested in buying their shares would not need to be much worried about the risk involved in these investments amid the coronavirus crisis. Security Exchange Commission of Pakistan (SECP) kept receiving these private companies’ registration requests long before the pandemic. In November 2017, SECP registered 881 companies taking the total number of registered companies to 84, 201. According to the PSX correspondent, only one in one-hundred-fifty companies dares to enter into the Pakistan Stock Market.

Only in December 2018, SECP registered more than 1,183 companies, with a total number of 94,205 registered companies.  We cannot cover the whole list of companies in this blog. A few names worth mentioning here for Salesprofessionalsforum.com readers:

The Organic Meat Company – InvestorComplaint@tomcl.net

We have heard about Meat One, Khas Meat, Zabeeha (by Fauji) but many of us don’t hear about the biggest and foremost multiple times export trophy winner of Halal Meat products. An ISO 9001:2015 certified standard meat processing unit at Gadap Town Karachi, the Pakistan Stock Exchange published the prospectus for IPO for Organic Meat Company. The IPO of TOMCL has been a very successful story. The company was to raise PKR 720 million by issuing 40 million ordinary shares. The IPO of TOMCL started making news that the issue was oversubscribed by 1.7 times for with bids for 60.81 million shares against 40 million offered.

The second wave of Coronavirus fear does not affect the public offering for TOMCL. It shows that Pakistanis private companies earned enough confidence of Investors in their policies. 

TPL – Trakker Pakistan Ltd – info@tpltrakker.com.pk

Trakker Pakistan Limited was the pioneer in Global Positioning Services (GPS), GSM Satellite Mobile Tracking Management in Pakistan. TPL Incorporated in 2008 and became the first Publicly listed Tracking company in Pakistan. In July TPL conducted an IPO to raise PKR 1.38 billion with an offer to 115.7 million shares to the public. Arif Habib Ltd was the consultant for IPO offered by the TPL Trakker Pakistan Ltd.

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