The public subscription for Abamco Composite Fund would start from May 14 to May 15 to raise Rs 1 billion through initial public offering.
The Abamco Composite is a closed-end scheme, having an pre-initial public offering of Rs1.590 billion while the company's investment is Rs 410 million. The company has given an option of Rs 400 million to International Finance Corporation to buy its certificates, while the company earmarks a green shoe option of Rs 750 million.
IFC, the private sector arm of the World Bank Group, has already expressed its interest in the Abamco Composite and has been an option to invest Rs 400 million.
This foreign investment will directly add to the capitalisation of the group's equity markets. Other international bodies have also shown interest in Abamco mutual funds, after studying their past record and outstanding performance.
The main objective of the Abamco Composite is to enable the certificate holders to participate in a diversified portfolio of securities representing investments in the capital and money markets of Pakistan.
The investment objective of Abamco, by prudent investment management, maximises the total investment return, which would consist of a combination of capital appreciation and income.
Abamco Composite will follow "large cap" investment strategy, investing primarily in large market capitalisation companies.
Consistent with this policy, Abamco Composite will invest primarily in equity securities and shares of large-cap companies having market capitalisation of over rupees one billion.
The fund will also invest in debt securities up to 20 percent of the net assets of the fund.