Only three new companies got listed at the Pakistan Stock Exchange (PSX), a barometer to gauge the country’s economic performance, in 2018 against expectation of seven to eight due to economic slowdown during the year.
The market is expected to return to good old days as soon as the government clarifies its economic policies, which are largely linked with an expected International Monetary Fund (IMF) bailout of $6-8 billion.
Owing to this, the market is hoping to see eight new listings next year. Interloop Limited, in the textile sector, may be one of the leading newly listed firms out of expectations of eight listings in 2019.
“During 2018, three new stocks were listed (other than modarabas) at the PSX, where new entrants raised Rs4.3 billion cumulatively,” Topline Securities reported in a recent report. “This (Rs4.3 billion) is 49% lower than the amount raised in 2017, which was Rs8.5 billion.”
AGP Limited, a pharmaceutical company, through its offer for sale collected 65% of the total raised capital in 2018. The company offered 35 million shares whereas OBS Pakistan and Muller and Phipps Pakistan sold 20 million and 15 million shares, respectively.
Two other initial public offerings (IPOs) raised nearly equal amounts – Matco Foods (MFL) raised Rs758 million while At-Tahur (PREMA) raised Rs770 million. MFL is a basmati rice exporter while PREMA is operating in the dairy segment of Pakistan, the brokerage house reported.
“MFL remained the top performing IPO with IPO-to-date return of 16%, followed by AGP with 1% return while PREMA showed a decline of 6%,” it stated.
Around eight IPOs are scheduled for 2019 where the largest IPO is expected in the textile sector. “Interloop Limited, one of the largest sock suppliers to world’s leading players like Nike, Adidas, Puma, etc, is planning to raise around Rs5 billion to finance its expansion plans,” it stated.
Other IPOs are expected in consumer, auto part and pharmaceutical segments among others, it added.