The Securities and Exchange Commission of Pakistan has issued draft amendments for a final round of public consultation on the framework governing public offers of shares, debt securities and units of REIT schemes. The proposals aim to streamline the IPO process, including reducing processing time to 14 working days, removing duplication in listing and prospectus applications, strengthening and simplifying disclosure requirements, and improving price discovery through greater use of technology and market infrastructure. Key proposed changes include reforms to book building, replacing the concept of a book runner so that eligible participants can place bids directly and onboard bidders, discontinuing the 100% book building mechanism to encourage underwriter participation for the retail portion at the strike price, increasing the minimum bid from PKR 1 million to PKR 5 million, and narrowing the book building price band from 40% to 20%. A new clawback mechanism would allow retail allocations to rise to up to 25% where an IPO is oversubscribed. Banks would be permitted to act as a Consultant to the Issue for equity public offerings, subject to forming a separate subsidiary for this function within five years, and the CTI role would be enhanced to support stronger assessment of the issuer and offering documents. The draft also introduces tailored procedures and disclosures for REIT unit offerings, GEM companies, short-term debt securities and the listing of local companies’ shares outside Pakistan, alongside simplified review for prospectus supplements to support shelf registration and short-term corporate debt issuance, and streamlined disclosures with voluntary CTI appointment for secondary offerings and debt issuance. Comments on the draft amendments are due by April 24, 2025. The package also proposes technology measures including QR codes for prospectus and financial accounts, acceptance of electronic signatures, submission of listing and prospectus applications via the PRIDE platform, and a complete transition to e-IPO applications starting from July 1, 2025.
Securites & Exchange Commission of Pakistan 2025-04-10
Securities and Exchange Commission of Pakistan consults on draft reforms to streamline public offerings and reduce IPO processing time to 14 working days
The Securities and Exchange Commission of Pakistan has released draft amendments for public consultation to streamline the framework for public offers of shares, debt securities, and REIT units. Key proposals include reducing IPO processing time, enhancing disclosure requirements, and reforming book building to encourage underwriter participation. The amendments also introduce technology measures like QR codes, electronic signatures, and a transition to e-IPO applications.