I am delighted to know that Pakistan Stock Exchange, South Asian Federation of Exchanges and Treet Corporation are joining hands in organizing the next edition of the Pakistan IPO Summit. I commend all of these entities and hope that their efforts to enlist more and more companies shall bring fruit.
After a dream of early 90s when more than 268 companies got listed on the domestic bourses, the first decade of the new century saw somewhat slower growth in the number of new listings. This trend has continued even during the ongoing decade as the pace of new IPOs has not been encouraging. It is quite unhealthy that companies are not coming forward to get listed at our premier exchange. This trend needs to be reversed and all key players associated with the IPO market need to make coordinated efforts to bring new 1 listings.
One reason for the slow pace of listing is the lack of engagement of concerted efforts in marketing the benefits of IPOs to the business enterprises in Pakistan. There is a dire need to engage all eligible non-listed companies and enterprises to get them aware of the benefits of listings. Holding events such as the Pakistan IPO Summit is one of the ways to reach out to such companies and enterprises. Purpose of the Summit will be best served when we are successful in highlighting that the rewards provided by our capital market are far better than the fear of losing control. Furthermore, we also need to emphasize that fund-raising through the stock exchange offers a relatively lower cost of capital.
As the apex regulator of the market, SECP has introduced number of reforms for encouragement and facilitation of IPOs / new listings, during recent years. These reforms include updating public offering laws, dissemination of draft prospectus on PSX website for public comments; preparation of listing guide book for facilitation of the issuers and consultants to the issue, preparation of IPO Investors' Guide for awareness of the investors, preparation of regulatory framework for regulating affairs of the related market intermediaries, development and implementation of Centralized e-IPO System (CES), emphases on holding shares and other, securities subscribed through IPOs in the Book Entry Form only, dividend payments through e-credit, and reporting of data relating to Sukuk and corporate bonds through the corporate Bond Reporting System (CDMRS). Furthermore, in order to encourage listing and trading of the privately placed debt securities and Sukuk, SECP has approved necessary regulatory of PSX. Although, for the last few years we at PSX have appropriate platform for trading of share of SMEs, but we have not been able to get listed any single SME. SECP is working with PSX on promoting and facilitating listing of SMEs.
SECP would continue to make all out efforts to facilitate all such companies which aspire to become listed in the future. A dedicated team of SECP dealing with IPOs will always be available to facilitate the issuers.
The IPO Summit 2018 must devise and suggest a workable way forward for growth of the IPO market.
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