South Asian Federation of Exchanges (SAFE) the only industry representative association for capital markets in South Asia, in collaboration with its lead promoters for Pakistan IPO Summit 2015; the Lahore Stock Exchange (LSE), Karachi Stock Exchange (KSE), and Islamabad Stock Exchange (ISE), proudly announces the "IPO Market Development Awards 2015".
Carrying on with the groundbreaking IPO Market Contribution Awards unveiled in 2014, the IPO Capital Market Development Awards 2015 are designed to acknowledge the inroads made by financial services industry towards expanding the IPO market base. These awards highlight contributions made towards securing and developing a healthy culture of IPOs in our capital market.
The IPO market of Pakistan claims a 43% share of market in the advisory, arrangement and underwriting of all domestic equity listings since CY2008. Where the IPO market offers a great opportunity to the capital market intermediaries of expanding their client outreach and introduce private entrepreneurs and successful private enterprises to the capital markets, the present market condition also provides a great opportunity for unlisted corporations to raise funds and catalyse future growth through our capital markets.
The recent upsurge in the investment interest of individual investors in our capital markets and the exemplary success of IPOs of financially sound and established companies, presents a case of investment running after a few good opportunities. The scenario provides a rewarding springboard to private entrepreneurs aiming to fuel the growth and expansion of their enterprises through the capital market, and calls on the capital market intermediaries to take advantage of the favourable market trends to encourage more companies to get listed.
The IPO Market Development Awards 2015 are presented in the following categories:
1. IPO/SPO Market Development Awards are presented to:
-- Privatisation Commission, Government of Pakistan
-- Securities and Exchange Commission of Pakistan (SECP)
2. Islamic Instrument IPO Award - 2014:
-- Habib Bank Limited (HBL)
-- UBL Fund Managers (UBL Funds)
3. Innovative IPO Instrument Award - 2014:
-- Arif Habib Limited (AHL)
-- 4. Top Managers & Financial Advisers Award - 2014:
-- AKD Securities Limited (AKDS)
--- Habib Bank Limited (HBL)
5. Leading Book Runner Award - 2014:
-AKD Securities Limited (AKDS)
6. Maximum Mutual Fund IPOs Awards:
-UBL Fund Managers (UBL Funds)
7. IPO Business Development Award for Individual Contributions - 2014:
Mr Amir Muhammad Khan Afridi - Director, Market Supervision and Registration Department, Securities Market Division, SECP.
Mr Muhammad Ghufran, Deputy General Manager - Operations - KSE.
Ms Maryam Baqir, Ex-Manager - Corporate Communications - LSE.
The Privatisation Commission (PC):
Privatisation in Pakistan is an important economic reform policy tool, for generating growth and to expunge structural inefficiencies, by removing false barriers and opening up the economy to competition. During January 1991 to April, 2015 the Commission has completed a total of 171 transactions at gross sale price of Rs 646.455 billion. In the SPO market, in 2014-15 PC completed four SPO transactions of HBL, ABL, UBL and PPL.
UBL's transaction, completed in June 2014, was the first transaction by the Privatisation Commission (PC) after gap of almost Seven (07) Years and one of the largest capital market transaction in Pakistan till June 2014, raising over PKR 38 Billion including Foreign Exchange of over US $310 Million for the Government of Pakistan.
PPL's transaction, completed in June 2014, was one of the largest ever domestic SPO wherein GOP divested approximately 5% GOP shareholding in PPL raising PKR15.3 billion or USD155 million. It was also the largest ever offering via Domestic Book Building Mechanism conducted in the history of the country.
ABL's SPO was completed in December 2014, generating a total demand of over PKR 21 Billion and demand from Foreign Investors exceeded US $30 Million while the SPO was over-subscribed by 14x with Strike price at 2.5% discount beating the Asia region price benchmarks for precedent transactions.
Most recently, Privatisation Commission has completed the divestment of 41.5% shares of HBL through Offer for Sale of Shares to foreign and domestic investors, in April 2015. It was the largest ever Equity Offering in Pakistan and also the largest ever Equity Offering in Asian Frontier Markets.
Habib Bank Limited (HBL):
HBL is the largest bank of Pakistan, and has not only contributed to the overall development of the banking sector in Pakistan but also has a strong emphasis in the development of Pakistan's capital markets. The bank has been the recipient of numerous prestigious awards, such as the Best Bank in Pakistan (Euromoney), Bank of the Year (The Banker), Safest Bank in Pakistan (Global Finance), and Lead Manager and Financial Advisor of the Year 2013 for the IPO Market (IPO Summit 2014 - SAFE).
HBL has also continuously played a vital role to promote and develop the capital markets in Pakistan. For the equity capital markets, HBL assisted in the revival of IPO market by conducting two out of three IPOs in 2013, and has further supported it through two IPOs including the very first listing of a Permate Gas operated Power Plant in Pakistan, and one SPO of the largest domestic secondary public offering and book building in the history of Pakistan's capital markets worth more than PKR 18 billion in 2014 alone. HBL has also contributed towards the debt capital markets, conducting the first retail listed Sukuk in the history of Pakistan's debt capital markets of PKR.
HBL served as the first exclusive advisor for the First Retail Listed Sukuk in the history of Pakistan's debt capital markets, that of PKR 6bn for K-Electric Ltd, with receipt of complete subscription in record time of just 12 business hours. The Subscription period was aimed to cover a span of 3 months but due to the HBL's pro-active marketing & placement strategies along with the Instrument's unique Islamic structure, the Issue was subscribed in a mere span of 12 hours.
Based on the stellar performance, the Company is currently in the process of another Sukuk worth PKR 22 billion, for which HBL is the Exclusive Financial Advisor.
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