Listing on Pakistan Stock Exchange Your Avenue for Progress August - - PowerPoint PPT Presentation

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Listing on Pakistan Stock Exchange Your Avenue for Progress August - - PowerPoint PPT Presentation

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:


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Listing on Pakistan Stock Exchange

Your Avenue for Progress

August 2018

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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

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Section 1

Benefits Of Listing

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Why should you list on PSX?

Raise Long Term Low-cost Capital Inclusion in Indices Inexpensive Financing

  • Growth and expansion needs
  • Invest or carry out merger & acquisition plans
  • Invest in new projects
  • 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 measure Pakistan’s performance. Listing will give you the chance to be included in these indices, providing you with global recognition. Money raised through offering your company’s share

  • n the bourse is relatively inexpensive, especially in

a rising interest rate environment, helping

  • rganizations reduce their dependence on costly

long term and short term loans.

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Why should you list on PSX?

Tax Credit

  • 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

  • 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

  • Listed companies on the Exchange are regarded

as Industry leaders in their respective sectors.

Enhances Company’s Public Profile

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

Improved Relations with Bankers and Suppliers

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Why should you list on PSX?

Listing bridges any discord that may arise during a transition from the first generation to the next, by introducing

  • Corporate Governance Structures
  • Succession Planning

Business Continuity and Succession Planning

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Attract and retain the best talent for your company because of enhanced reputation.

HR Capital

By going public, all stakeholders involved use fair valuation of the company by the market which is generally higher than the book value, outlining the true worth of an organization.

Higher Valuation

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Section 2

Successfully Listed

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Listing Success Stories

20000 40000 60000 80000 100000 120000 Before Listing Dec-14 Dec-15 Dec-16 PKR in Millions

Company Performance

Sales Net Profit Shareholder's Equity

  • 1. HASCOL Petroleum Limited

Year of Listing: 2014

16.55 30.67 37.53 41.12 5.97 7.06 9.39 10.07 10 20 30 40 50 Before Listing Dec-14 Dec-15 Dec-16 PKR Book Value Per share Earning Per Share 8

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Listing Success Stories

1000 2000 3000 4000 5000 6000 7000 Before Listing Dec-15 Dec-16 PKR in Millions

Company Performance

Sales Net Profit Shareholder's Equity

  • 2. Systems Limited

Year of listing: 2015

24.64 22.55 26.26 4.92 4.09 4.64 5 10 15 20 25 30 Before Listing Dec-15 Dec-16 PKR Book Value Per share Earning Per Share 9

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Listing Success Stories

5000 10000 15000 20000 25000 30000 Before Listing Jun-15 Jun-16 Jun-17 PKR in Millions

Company Performance

Sales Net Profit Shareholder's Equity

  • 3. Mughal Iron and Steel Industries Limited

Year of listing: 2015

21.98 31.13 33.67 26.38 4.76 6.03 7.1 3.94 5 10 15 20 25 30 35 40 Before Listing Jun-15 Jun-16 Jun-17 PKR Book Value Per share Earning Per Share 10

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Listing Success Stories

5000 10000 15000 20000 25000 Before Listing Jun-15 Jun-16 PKR in Millions

Company Performance

Sales Net Profit Shareholder's Equity

  • 4. Amreli Steels Limited

Year of listing: 2015

17.74 29.83 31.62 4.54 4.31 3.62 5 10 15 20 25 30 35 Before Listing Jun-16 Jun-17 PKR Book Value Per share Earning Per Share 11

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Section 3

Listing Requirements

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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

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What are the mandatory requirements?

Financial Statements

  • Must prepare periodic

Financial statements.

  • Must audit statements by

QCR (Quality Control Review) 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.

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Section 4

Annual Listing Fee

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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

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What is the Listing Fees?

Companies Having Market Capitalization 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 Market Capitalization 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

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Section 5

Listing Procedure

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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
  • f 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 give approval of your prospectus.
  • Public offer is held through fixed price or book building method
  • Your Company is formally listed on the Exchange

Timeline Procedure

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Section 6

De-Listing

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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

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Contact Information

Raeda Latif General Manager Email: raeda.latif@psx.com.pk Telephone: +92-2135274580 Ext: 4580 Haris Saeed Business Development Manager Email: haris.saeed@psx.com.pk Telephone: +92-2135274574 Ext: 4582 Help Desk (92-21) 111-011-122 Karachi Office Ext: 4580, 4582 Lahore Office Ext: 4653 Islamabad Office Ext: 4666 Web: psx.com.pk Email: listing@psx.com.pk

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Contact Information Serving Investors & Industry

Stock Exchange Building, Stock Exchange Road, Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk