Listing on Pakistan Stock Exchange Your 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 2
Section 1 Benefits Of Listing 3
Why should you list on PSX? Growth and expansion needs Invest or carry out merger & acquisition plans Raise Long Term Invest in new projects Low-cost Capital 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 Inclusion in measure Pakistan’s performance. Listing will give you Indices 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 Inexpensive a rising interest rate environment, helping Financing organizations reduce their dependence on costly long term and short term loans.
Why should you list on PSX? • IPOs add a level of prestige to a Company IPOs can be used as a branding and marketing • Enhances Company’s tool as they attract media interest, attention and Public Profile scrutiny • Listed companies on the Exchange are regarded as Industry leaders in their respective sectors. • 20% on tax payable in the first year of listing • 20% on tax payable in the subsequent first tax year of listing Tax Credit • 10% on tax payable in the following two tax years respectively A listed company has to disclose and disseminate all material and price sensitive financial information Improved Relations with which adds to: Bankers and Suppliers • The business transparency • Improved relations with Bankers, lenders and clients
Why should you list on PSX? Attract and retain the best talent for your company HR Capital because of enhanced reputation. By going public, all stakeholders involved use fair valuation of the company by the market which is Higher Valuation generally higher than the book value, outlining the true worth of an organization. Listing bridges any discord that may arise during a transition from the first generation to the next, by Business Continuity and introducing Succession Planning • Corporate Governance Structures • Succession Planning 6
Section 2 Successfully Listed 7
Listing Success Stories Company Performance 1. HASCOL Petroleum Limited 120000 Year of Listing: 2014 PKR in Millions 100000 80000 60000 50 41.12 37.53 40000 40 30.67 20000 30 PKR 0 16.55 20 10.07 9.39 Before Dec-14 Dec-15 Dec-16 7.06 5.97 10 Listing 0 Before Dec-14 Dec-15 Dec-16 Sales Net Profit Shareholder's Equity Listing Book Value Per share Earning Per Share 8
Listing Success Stories 2. Systems Limited Company Performance Year of listing: 2015 7000 PKR in Millions 6000 5000 30 26.26 24.64 4000 25 22.55 3000 20 2000 PKR 15 1000 10 0 4.92 4.64 4.09 5 Before Listing Dec-15 Dec-16 0 Sales Net Profit Shareholder's Equity Before Listing Dec-15 Dec-16 Book Value Per share Earning Per Share 9
Listing Success Stories Company Performance 3. Mughal Iron and Steel Industries Limited Year of listing: 2015 30000 PKR in Millions 25000 40 20000 33.67 35 31.13 15000 30 26.38 10000 25 21.98 PKR 20 5000 15 0 7.1 10 6.03 4.76 3.94 Before Jun-15 Jun-16 Jun-17 5 Listing 0 Before Jun-15 Jun-16 Jun-17 Sales Net Profit Shareholder's Equity Listing Book Value Per share Earning Per Share 10
Listing Success Stories Company Performance 4. Amreli Steels Limited Year of listing: 2015 25000 PKR in Millions 20000 35 31.62 29.83 15000 30 25 10000 17.74 20 PKR 5000 15 10 0 4.54 4.31 3.62 5 Before Listing Jun-15 Jun-16 0 Sales Net Profit Shareholder's Equity Before Listing Jun-16 Jun-17 Book Value Per share Earning Per Share 11
Section 3 Listing Requirements 12
What is the Eligibility Criteria? Main Board SME Board • Minimum paid up • Minimum paid up capital of Rs.200 million capital of Rs.25 million 13
What are the mandatory requirements? Financial Operational SME Website Statements Requirements • Must prepare periodic • Must contain basic • Must be in business for at Financial statements. business information. least three years. • Must audit statements by • Must contain prospectus • Must be profitable for at QCR (Quality Control least two preceding years • Must post annual, half-year Review) rated chartered before getting listed. quarterly accounts . accountants. • Must publish on the website. 14
Section 4 Annual Listing Fee 15
What is the Listing Fees? Initial Listing • One tenth of 1% of Paid Up Capital Fees • Capped at PKR 1.5 Million • Annual Rate for FY 2018-19 Annual Listing • Annual Rate for FY 2019-20 Fees • Capped at PKR 3 Million 16
What is the Listing Fees? Annual Listing Fees FY 2018-19 FY 2019-20 Companies Having Market Rate Of Fee Per Annum Companies Having Market Rate Of Fee Per Annum Capitalization As On June 30 Capitalization As On June 30 Up to Rs.100 million Rs.100,000 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.100 million & up to Rs.250 million Rs.100,000+0.075% on excess over Rs.100 million Above Rs.250 million & up to Rs.500 million Rs.212,500+0.06% on excess over Rs.250 million Above Rs.250 million & up to Rs.500 million Rs.212,500+0.045% on excess over Rs.250 million Above Rs.500 million & up to Rs.1,000 million Rs.362,500+0.025% on excess over Rs.500 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.487,500+0.015% on excess over Rs.1,000 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.637,500+0.0065% on excess over Rs.2,000 million 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.10,000 million & up to Rs.20,000 million Rs.1157,500+0.0025% on excess over Rs.10,000 Above Rs.10,000 million & up to Rs.20,000 million Rs.885,000+0.001% on excess over Rs.10,000 million million Above Rs.20,000 million & up to Rs.50,000 million Rs.985,000+0.0004% on excess over Rs.20,000 million Above Rs.20,000 million & up to Rs.50,000 million Rs.1407,500+0.00075% on excess over Rs.20,000 million Above Rs.50,000 million Rs.1,105,000+0.0003% on excess over Rs.50,000 Above Rs.50,000 million Rs.1,632,000+0.0005% on excess over Rs.50,000 million million 17
Section 5 Listing Procedure 18
How can you get your company listed on the Exchange? Procedure Timeline •Your Company appoints a “Consultant” and completes submission Time Varies of all documents. • Initial review of your Company and necessary due diligence to One Month ensure adequate disclosures in the prospectus ( Approx.) • On behalf of the Exchange, the PSX Listing Committee allows Approval valid for approval of your listing application. Sixty days One Month • SECP give approval of your prospectus. (Approx.) Seven to ten days • Public offer is held through fixed price or book building method (Approx.) Soon After Public • Your Company is formally listed on the Exchange Subscription 19
Section 6 De-Listing 20
What will be your Exit Strategy? Involuntary De-listing Voluntary De-listing Your company can be removed from You can delist your company through the listed companies list due to buy-back of shares at a price approved violation of PSX’s Listing of Companies by the Exchange & Securities Regulations 21
Contact Information Help Desk (92-21) 111-011-122 Raeda Latif Karachi Office Ext: 4580, 4582 Lahore Office Ext: 4653 General Manager Islamabad Office Ext: 4666 Email: raeda.latif@psx.com.pk Telephone: +92-2135274580 Ext: 4580 Web: psx.com.pk Email: listing@psx.com.pk Haris Saeed Business Development Manager Email: haris.saeed@psx.com.pk Telephone: +92-2135274574 Ext: 4582 22
Contact Information Serving Investors & Industry Stock Exchange Building, Stock Exchange Road, Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk
Recommend
More recommend
