Listing on Pakistan Stock Exchange · Dec-14 Dec-15 Dec-16 PKR Book Value Per share Earning Per...

Listing on Pakistan Stock ExchangeYour Avenue for Progress

August 2018

Contents of the Presentation:

Section 1: Benefits Of Listing

Section 2: Successfully Listed

Section 3: Listing Requirements

Section 4: Annual listing fee

Section 5: Listing Procedure

Section 6: De-Listing

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Section 1

Benefits Of Listing

3

Why should you list on PSX?

Raise Long Term Low-cost Capital

Inclusion in Indices

Inexpensive Financing

Growth and expansion needs Invest or carry out merger & acquisition plans Invest in new projects Enhance current capacity Diversify business Meets working capital requirements

The PSX has several indices like KSE 100, a benchmark used by investors all around the world to measure Pakistan’s performance. Listing will give you the chance to be included in these indices, providing you with global recognition.

Money raised through offering your company’s share on the bourse is relatively inexpensive, especially in a rising interest rate environment, helping organizations reduce their dependence on costly long term and short term loans.


Tax Credit

• 20% on tax payable in the first year of listing• 20% on tax payable in the subsequent first tax

year of listing • 10% on tax payable in the following two tax years

respectively

• IPOs add a level of prestige to a Company• IPOs can be used as a branding and marketing

tool as they attract media interest, attention and scrutiny

• Listed companies on the Exchange are regarded as Industry leaders in their respective sectors.

Enhances Company’s Public Profile

A listed company has to disclose and disseminate all material and price sensitive financial information which adds to:• The business transparency• Improved relations with Bankers, lenders and

clients

Improved Relations with Bankers and Suppliers


Listing bridges any discord that may arise during a transition from the first generation to the next, by introducing • Corporate Governance Structures• Succession Planning

Business Continuity and Succession Planning

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Attract and retain the best talent for your company because of enhanced reputation.HR Capital

By going public, all stakeholders involved use fair valuation of the company by the market which is generally higher than the book value, outlining the true worth of an organization.

Higher Valuation

Section 2

Successfully Listed

7

Listing Success Stories

0

20000

40000

60000

80000

100000

120000

BeforeListing

Dec-14 Dec-15 Dec-16

PK

R in

Mill

ion

s

Company Performance

Sales Net Profit Shareholder's Equity

1. HASCOL Petroleum LimitedYear of Listing: 2014

16.55

30.67

37.5341.12

5.97 7.06 9.39 10.07

0

10

20

30

40

50

BeforeListing

Dec-14 Dec-15 Dec-16

PK

R

Book Value Per share Earning Per Share

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0

1000

2000

3000

4000

5000

6000

7000

Before Listing Dec-15 Dec-16

PK

R in

Mill

ion

s

Company Performance


2. Systems LimitedYear of listing: 2015

24.6422.55

26.26

4.92 4.09 4.64

0

5

10

15

20

25

30

Before Listing Dec-15 Dec-16

PK

R


9


0

5000

10000

15000

20000

25000

30000

BeforeListing

Jun-15 Jun-16 Jun-17

PK

R in

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ion

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Company Performance


3. Mughal Iron and Steel Industries LimitedYear of listing: 2015

21.98

31.1333.67

26.38

4.76 6.03 7.13.94

0

5

10

15

20

25

30

35

40

BeforeListing

Jun-15 Jun-16 Jun-17

PK

R


10


0

5000

10000

15000

20000

25000

Before Listing Jun-15 Jun-16

PK

R in

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ion

s

Company Performance


4. Amreli Steels LimitedYear of listing: 2015

17.74

29.8331.62

4.54 4.31 3.62

0

5

10

15

20

25

30

35

Before Listing Jun-16 Jun-17

PK

R


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Section 3

Listing Requirements

12

What is the Eligibility Criteria?

Main Board

• Minimum paid up capital of Rs.200 million

SME Board

• Minimum paid up capital of Rs.25 million

13

What are the mandatory requirements?

Financial Statements

• Must prepare periodic Financial statements.

• Must audit statements by QCR (Quality Control Review) rated chartered accountants.

• Must publish on the website.

SME Website

• Must contain basic business information.

• Must contain prospectus

• Must post annual, half-year quarterly accounts .

Operational Requirements

• Must be in business for at least three years.

• Must be profitable for at least two preceding years before getting listed.

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Section 4

Annual Listing Fee

15

What is the Listing Fees?

•One tenth of 1% of Paid Up Capital

•Capped at PKR 1.5 Million

Initial Listing Fees

•Annual Rate for FY 2018-19

•Annual Rate for FY 2019-20

•Capped at PKR 3 Million

Annual Listing Fees

16

What is the Listing Fees?

Companies Having MarketCapitalization As On June 30

Rate Of Fee Per Annum

Up to Rs.100 million Rs.100,000

Above Rs.100 million & up to Rs.250 million Rs.100,000+0.075% on excess over Rs.100 million


Above Rs.500 million & up to Rs.1,000 million Rs.325,000+0.02% on excess over Rs.500 million

Above Rs.1,000 million & up to Rs.2,000 million Rs.425,000+0.01% on

Above Rs.2,000 million & up to Rs.10,000 million Rs.525,000+0.0045% on excess over Rs.2,000 million



Above Rs.50,000 million Rs.1,105,000+0.0003% on excess over Rs.50,000 million

Companies Having MarketCapitalization As On June 30

Rate Of Fee Per Annum

Up to Rs.100 million Rs.100,000



Above Rs.500 million & up to Rs.1,000 million Rs.362,500+0.025% on excess over Rs.500 million





Above Rs.50,000 million Rs.1,632,000+0.0005% on excess over Rs.50,000 million

Annual Listing Fees

FY 2018-19 FY 2019-20

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Section 5

Listing Procedure

18

How can you get your company listed on the Exchange?

Time Varies

One Month

( Approx.)

Approval valid for Sixty days

One Month

(Approx.)

Seven to ten days

(Approx.)

Soon After Public Subscription

• Your Company appoints a “Consultant” and completes submission of all documents.

• Initial review of your Company and necessary due diligence to ensure adequate disclosures in the prospectus

• On behalf of the Exchange, the PSX Listing Committee allows approval of your listing application.

• SECP give approval of your prospectus.

• Public offer is held through fixed price or book building method

• Your Company is formally listed on the Exchange

TimelineProcedure

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Section 6

De-Listing

20

What will be your Exit Strategy?

Voluntary De-listing

You can delist your company through buy-back of shares at a price approved

by the Exchange

Involuntary De-listing

Your company can be removed from the listed companies list due to

violation of PSX’s Listing of Companies & Securities Regulations

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Contact Information

Raeda Latif

General Manager

Email: [email protected]

Telephone: +92-2135274580 Ext: 4580

Haris Saeed

Business Development Manager

Email: [email protected]

Telephone: +92-2135274574 Ext: 4582

Help Desk (92-21) 111-011-122 Karachi Office Ext: 4580, 4582Lahore Office Ext: 4653Islamabad Office Ext: 4666

Web: psx.com.pkEmail: [email protected]

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Contact Information

Serving Investors & IndustryStock Exchange Building, Stock Exchange Road,

Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk

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