Almost eight companies went public in 2021, which records the maximum number of offerings within a year since 2015.
The afresh registered companies that offered Initial Public Offerings (IPOs) raised Rs 20 billion from the general public, as per a research memo issued by Topline Securities on Tuesday.
Six out of eight listings were on the central board of the Pakistan Stock Exchange (PSX) whereas two were on the Growth Enterprise Market (GEM) counter, which is kept for smaller and riskier firms.
In 2015, there had been eight offerings that raised a total of Rs 116 billlion. The figure was remarkably massive that year due to a tributary offering of Habib Bank Ltd shares by the federal government that unaided generated Rs 102 billion.
Read more: Panther Tyres raises Rs 2.632 billion through book building at PSX
Moreover, each of these offerings in the leaving year got “immense enthusiasm” and was oversubscribed.
The brokerage stated Octopus Digital Ltd has mailed the maximum return (46 percent) amid the eight listings so far. It was further followed by Citi Pharma Ltd, which cherished 5 percent.
On the contrary, the earliest listing on the GEM counter, Pak Agro Packaging Ltd, has informed a decline of 35 percent. Panther Tyres Ltd has also shown a drop in 33 percent.
“These offerings saw huge investor interest despite a dull performance by the KSE-100 index, which saw a 2 percent decline in rupee terms and 12 percent in dollar terms in 2021 to date,” it added.
As for the viewpoint, the brokerage believed the PSX will constantly meet new offerings in 2022 if the macroeconomic condition steadies following the continuation of the International Monetary Fund’s loan programme.
Last month, Adamjee Life Assurance Company Ltd (ALACL) conveyed that it was going public to increase at least Rs 700 million.