Pak-Qatar General Takaful Limited (PQGTL), Pakistan's first non-life Shariah-compliant operator, has announced that its initial public offering (IPO) has been oversubscribed at the Pakistan Stock Exchange (PSX).
The bookbuilding exercise involving institutional investors, conducted on 21-22 January, saw the strike price close at PKR14 (5 US cents) per share. It attracted bids totalling PKR4.74bn ($17.07m). It represents a subscription rate of 21 times based on the floor price of PKR10.
PQGTL is issuing 30m shares, of which 75% is allocated to institutional investors, while the remaining 25% is set aside for retail investors.
Successful bidders in the bookbuilding exercise are provisionally allotted 22.5m shares, while the remaining 7.5m shares will be offered to retail investors on 28-29 January.
Arif Habib, the consultant and lead manager of the issue, said in a statement, “The IPO became the first to reach the 40% price cap within just two hours of launch, reflecting strong investor confidence and robust market appetite."