Pakistani companies have raised interest-free investment worth Rs 35.4 billion via Initial Public Offerings (IPOs) and Right Shares from Pakistan Stock Exchange (PSX) during the outgoing year 2020.
According to Topline Securities, PSX witnessed four IPOs (including are preference share listing) during the current year. This comes even as the pandemic ravaged economies in the region as well as the world. The IPOs were from sectors like steel, meat processing, telecom, and chemicals.
“PSX witnessed four initial public offerings/IPOs (including preference share listing) in 2020 in sectors like steel, meat processing, telecom and chemicals. Together these companies raised Rs 8.4 billion.”
In 2019, PSX witnessed just one IPO of Rs 5 billion. Amongst these from listing to date, The Organic Meat (TOMCL) has generated the highest total return of 50 percent, followed by Agha Steel’s (AGHA) return of 15 percent, an analyst at Topline Securities said. TPL Trakker (TPLT) has lost 17 percent of its value since its listing, he added.
Besides IPOs, in 2020, 14 companies raised Rs 27 billion through Right Shares with Fauji Fertilizer Bin Qasim (FFBL) fetching the highest amount of Rs 5.0 billion, followed by Searle Pakistan (SEARL) rights of Rs 4.7 billion and Unity Foods (UNITY) rights of Rs 4.5 billion.
In 2019, 17 companies had raised Rs 30 billion through Right Shares wherein Hascol Petroleum (HASCOL) took the highest amount of Rs 8 billion followed by Hub Power’s (HUBC) issue of Rs 7 billion and Maple Leaf Cement’s (MLCF) issue of Rs 6 billion.
Read more: 10 new IPOs at PSX on the cards: Asad Umar
However, talking about the outlook in 2021, it was reported that with an improving outlook on the PSX, many equity IPOs are in the pipeline. Like Shell Petroleum (SHEL), seven companies have already announced Right Shares amounting to Rs 16 billion.
An analyst at Topline Securities said, “With improving outlook on stock market, many equity IPOs are in the pipeline.”
