The First National Equities is offering Rs 125 million shares to the general public, raising its paid-up capital to Rs 500 million. The public subscription opens from September 28 to 29. Allied Bank, Habib Bank, Muslim Commercial Bank, National Bank and United Bank are the bankers to the initial public offering.
According to Dr Shahid Zia, Group Head of Research, FNEL, Switch Securities Ltd, and Pakistan Securities Ltd, area of operations would be brokerage and trading of equities, investment, corporate finance and research.
First Standard Investment Bank Limited (FSIBL) is the lead manager and advisor to this issue. The company was incorporated as a public limited company on 3rd October 1994. It is a Corporate Member of the KSE and registered as a brokerage house under the Brokers and Agents Registration Rules 2001, with Securities and Exchange Commission of Pakistan (SECP).
On December 30, 2003 management of the company was taken over by the First Pakistan Securities Ltd, by purchasing shares from Capital One Equities Ltd. The new management changed the name of the company to present one on March 31.
The total paid-up capital is Rs 500 million, out of which the sponsors' share is Rs 125 million, while the pre-initial public offering is Rs 250 million, meaning investment from the Security Leasing Corporation Limited is of Rs 25 million, First Dawood Investment Bank Limited Rs 20 million, Crescent Standard Investment Bank Ltd, Rs 15 million and Rs 10 million each from Pak Oman Investment Co, Pak Kuwait Investment Co and Kaukab Mir Memorial Welfare Trust.
The company intends to build a nation-wide retail brokerage and portfolio management operation, utilising branch offices as well as the Internet trading, Dr Shahid Zia added. He said: "This is in line with the overall policy of SECP, which in collaboration with the stock exchanges of the country, is keen to create infrastructure for retail investors."
"The dividend pay-out is expected to be around 20 percent in the first full year of operations," he said.
The board of directors of the company comprises eminent business personalities having business experience spanning over decades, including more than 10 years of financial markets.
The board consists of Ali Aslam Malik, Saeed Ahmed Bajwa, Sheikh Khalid Tawwab, Malik Attiqur Rehman, Sajjad Ahmed, Mrs Adeela Ali, Shahzad Akbar. The nominee directors of the NBP include Ejaz Akhtar Ansari and Syed Najam Rizvi.