Image Credits: Daily Times
KARACHI, Nov 02 (APP): Agha Steel Industries Limited was listed on Pakistan Stock Exchange on Monday, witnessing over-subscription that shows increased confidence in the capital market by the investors, mainly of small investors.
This listing was formally announced at the Gong ceremony held in the trading hall of the exchange. The PSX traditional bell (Gong) was jointly struck by Chairman PSX Suleman Mehdi and ASIL’s Chief Executive Officer , Hussain Agha to mark the beginning of daily trading.
PSX Chairman Suleman Mehdi, expressing his pleasure, said it was the largest listing/independent public offer in the steel sector of the country and the third IPO of the current fiscal year. With listing of ASIL, Rs 3.8 billion capital has been raised on the platform of Pakistan Stock Exchange, which would further build the confidence of investors in Pakistan’s capital market despite apprehensions about the second wave of COVID19 hitting many economies of the world very badly.
Due to timely and practical decisions of our government and regulatory authorities/institutions along with joint efforts of other stakeholders, Pakistan successfully managed the negative effects of COVID19 pandemic’s first wave. Similarly, he was confident, that with the same spirit and strategy the country would be capable of coping with the second wave.
Mehdi informed that more companies had applied to PSX for listing/IPO and hopefully a good number of IPOs would be done in the next 6 months. PSX had already introduced four exchange traded funds (ETFs) and more are expected in the near future. Besides, the existing ones would witness further growth. ETF is a collective investment vehicle with shares that trade on stock exchanges at a market-determined price. Buying or selling ETF shares is accommodated through a broker on the pattern of shares of any publicly traded company. He said that PSX had done a very good job with quick recovery from COVID19 effects and so did the nation as a whole.
“The coming year seems bright for the capital market”, he was optimistic.
PSX’s Chief Executive Officer, Farukh H. Khan said that the listing of such companies would provide an opportunity to small investors and that it is very encouraging for the country’s capital market and the economy. He said that as against many other countries, the COVID19 and economic situations in Pakistan were much better.
Pakistan’s capital market is intact due to the result-oriented government decisions including reducing the interest rate and providing various other fiscal incentives to the businesses and industries. He requested the government to take more such steps and provide further incentives to strengthen the capital market, and trade and industry in the country with a focus on increasing investment and exports.
To a question, he said a good number of companies from different sectors are in line for IPOs. To another query, PSX’s CEO said the setback to the exchange over last few days was mainly because of the fear of a second wave of the COVID19 pandemic as the situation had worsened in many countries.
ASIL’s Chief Executive Officer, Hussain Agha said his company has a vision of introducing the latest technology in the backdrop of the boost and the demand in the real estate sector after unusual support and facilitation extended from Prime Minister Imran Khan and his team. He said that after listing on PSX, ASIL’s capital would significantly increase which would be utilised for expansion in the company’s production capacity; from 4,00,000 tones rolling capacity to 6,50,000 tones.
CEO of Arif Habib Securities Limited, Shahid Habib described the listing of ASIL as a very positive sign for the capital market, which had already witnessed 49 percent earning growth during the first quarter of the current fiscal year (July -Sept) against the same period last year.
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