listing on pakistan stock exchange · diversify business meets working capital requirements • 20%...
TRANSCRIPT
Listing on Pakistan Stock ExchangeYour 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?
Raise Long Term Low-cost Capital
Tax Credit
Balance Sheet Optimization
Growth and expansion needs Invest or carry out merger & acquisition plans Invest in new projects Enhance current capacity Diversify business Meets working capital requirements
• 20% on tax payable in the first year of listing• 20% on tax payable in the subsequent first tax
year of listing • 10% on tax payable in the following two tax years
respectively
Reduces long term liabilities by enabling:• Payment of its long term loans• Reducing its dependence on debt
Why should you list on PSX?
• IPOs add a level of prestige to a Company• IPOs can be used as a branding and marketing
tool as they attract media interest, attention and scrutiny
A listed company has to disclose and disseminate all material and price sensitive financial information which adds to:• The business transparency• Improved relations with Bankers, lenders and
clients
Listing bridges any discord that may arise during a transition from the first generation to the next, by introducing • Corporate Governance Structures• Succession Planning
Enhances Company’s Public Profile
Improved Relations with Bankers and Suppliers
Business Continuity and Succession Planning
5
Why should you list on PSX?
Listing brings in liquidity and ready marketability of the company’s securities
Pakistan is now part of the MSCI Emerging Market Index. Companies qualifying for the Index will:• Be considered for investment by international
investors tracking the MSCI EM Index• A level playing field with its international
counterparts
Public listing creates a market for the Company’s shares and sponsors can sell their shares in the secondary market
Liquidity
Feasible and Effective Exit Strategy
MSCI index
6
Section 2
Successfully Listed
7
Listing Success Stories
0
20000
40000
60000
80000
100000
120000
BeforeListing
Dec-14 Dec-15 Dec-16
PK
R in
Mill
ion
s
Company Performance
Sales Net Profit Shareholder's Equity
1. HASCOL Petroleum LimitedYear of Listing: 2014
16.55
30.67
37.5341.12
5.97 7.06 9.39 10.07
0
10
20
30
40
50
BeforeListing
Dec-14 Dec-15 Dec-16
PK
R
Book Value Per share Earning Per Share
8
Listing Success Stories
0
1000
2000
3000
4000
5000
6000
7000
Before Listing Dec-15 Dec-16
PK
R in
Mill
ion
s
Company Performance
Sales Net Profit Shareholder's Equity
2. Systems LimitedYear of listing: 2015
24.6422.55
26.26
4.92 4.09 4.64
0
5
10
15
20
25
30
Before Listing Dec-15 Dec-16
PK
R
Book Value Per share Earning Per Share
9
Listing Success Stories
0
5000
10000
15000
20000
25000
30000
BeforeListing
Jun-15 Jun-16 Jun-17
PK
R in
Mill
ion
s
Company Performance
Sales Net Profit Shareholder's Equity
3. Mughal Iron and Steel Industries LimitedYear of listing: 2015
21.98
31.1333.67
26.38
4.76 6.03 7.13.94
0
5
10
15
20
25
30
35
40
BeforeListing
Jun-15 Jun-16 Jun-17
PK
R
Book Value Per share Earning Per Share
10
Listing Success Stories
0
5000
10000
15000
20000
25000
Before Listing Jun-15 Jun-16
PK
R in
Mill
ion
s
Company Performance
Sales Net Profit Shareholder's Equity
4. Amreli Steels LimitedYear of listing: 2015
17.74
29.8331.62
4.54 4.31 3.62
0
5
10
15
20
25
30
35
Before Listing Jun-16 Jun-17
PK
R
Book Value Per share Earning Per Share
11
Section 3
Listing Requirements
12
What is the Eligibility Criteria?
Main Board
• Minimum paid up capital of Rs.200 million
SME Board
• Minimum paid up capital of Rs.25 million
13
What are the mandatory requirements?
Financial Statements
• Must prepare periodic Financial statements
• Must audit statements by QCR rated chartered accountants
• Must publish on the website
SME Website
• Must contain basic business information
• Must contain prospectus
• Must post annual, half-year quarterly accounts
Operational Requirements
• Must be in business for at least three years
• Must be profitable for at least two preceding years before getting listed
14
Section 4
Annual Listing Fee
15
What is the Listing Fees?
•One tenth of 1% of Paid Up Capital
•Capped at PKR 1.5 Million
Initial Listing Fees
•Annual Rate for FY 2018-19
•Annual Rate for FY 2019-20
•Capped at PKR 3 Million
Annual Listing Fees
16
What is the Listing Fees?
Companies Having MarketCapitalization As On June 30
Rate Of Fee Per Annum
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.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.325,000+0.02% on excess over Rs.500 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.525,000+0.0045% on excess over Rs.2,000 million
Above Rs.10,000 million & up to Rs.20,000 million Rs.885,000+0.001% on excess over Rs.10,000 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.50,000 million Rs.1,105,000+0.0003% on excess over Rs.50,000 million
Companies Having MarketCapitalization As On June 30
Rate Of Fee Per Annum
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.250 million & up to Rs.500 million Rs.212,500+0.06% 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.1,000 million & up to Rs.2,000 million Rs.487,500+0.015% on excess over Rs.1,000 million
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.10,000 million & up to Rs.20,000 million Rs.1157,500+0.0025% on excess over Rs.10,000 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.1,632,000+0.0005% on excess over Rs.50,000 million
Annual Listing Fees
FY 2018-19 FY 2019-20
17
Section 5
Listing Procedure
18
How can you get your company listed on the Exchange?
Time Varies
One Month
( Approx.)
Approval valid for Sixty days
One Month
(Approx.)
Seven to ten days
(Approx.)
Soon After Public Subscription
• Your Company appoints a “Consultant” and completes submission of all documents.
• Initial review of your Company and necessary due diligence to ensure adequate disclosures in the prospectus
• On behalf of the Exchange, the PSX Listing Committee allows approval of your listing application.
• SECP approves the prospectus.
• Public offer is held through fixed price or book building method
• Your Company is formally listed on the Exchange
TimelineProcedure
19
Section 6
De-Listing
20
What will be your Exit Strategy?
Voluntary De-listing
You can delist your company through buy-back of shares at a price approved
by the Exchange
Involuntary De-listing
Your company can be removed from the listed companies list due to
violation of PSX’s Listing of Companies & Securities Regulations
21
Contact Information
Raeda Latif
General Manager
Email: [email protected]
Telephone: +92-2135274580 Ext: 4580
Haris Saeed
Business Development Manager
Email: [email protected]
Telephone: +92-2135274574 Ext: 4582
Mariam Mehtab
Marketing and Business Executive
Email: [email protected]
Telephone: +92-2135274572 Ext: 4572
Help Desk (92-21) 111-011-122 Karachi Office Ext: 4580, 4582Lahore Office Ext: 4653Islamabad Office Ext: 4666
Web: psx.com.pkEmail: [email protected]
22
Contact Information
Serving Investors & IndustryStock Exchange Building, Stock Exchange Road,
Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk