Body to give final shape to mode of stocks financing

The ‘Shaukat Tarin Committee’ will hold a meeting with all stakeholders of stock market on Thursday evening to give a final shape to a new mode of financing, in order to bring back investors to the lack-lustre stock market and improve liquidity.

According to sources, the Committee has improvised the recommendations to be placed with government officials expected to meet in Karachi on Friday, headed by Dr Salman Shah, Advisor to Prime Minister on Economic Affairs, and Omar Ayub Khan, State Minister for Finance.

Stock market needs Rs 30 billion to improve liquidity

Lack of appropriate system to change the traditional badla to margin financing dried up the volumes, forcing the market to trade in a narrow band, resulting in serious drain market liquidity. According to a report presented to Shaukat Tarin – led Committee on “Stock Market Liquidity”, the stock market is driven by liquidity flows.

In case of Pakistan too, this is equally true. When the implementation of changeover from the traditional badla to margin financing began, a lack of appropriate preparation resulted in liquidity crunch. This is a serious situation and needs to be addressed urgently.

HUM TV – First media company to enter capital market

Eye Television Network Limited, that has launched HUM TV as its Satellite TV channel, is all set to make its Initial Public Offering (IPO) on Monday and Tuesday (June 27-28). The event is significant in the sense that the company is the first media (electronic or newspaper) to seek listing at the stock exchanges.

Compared to that, there are about 50 media houses in India that have offered shares to the Indian Public. Zee Telefilms; TV 18; Adlabs Films and Balaji Films being some of the big names in the field. A few of them are extremely big success stories. In 2004 the share price of Zee TV shares of the par value of Indian Re1 touched as high Rs174.

UBL IPO may miss deadline

The Privatisation Commission has virtually missed the deadline of April 30 for the United Bank Limited (UBL) initial public offering (IPO) as the Security & Exchange Commission of Pakistan (SECP) and stock exchanges are yet to register the transaction, it was learnt here on Friday. In the case of IPO, after the cabinet committee on privatisation (CCoP) approval, the privatisation commission is required to submit the case with the SECP for registration.

KAPCO IPO Subscription from Feb 7

Pakistan will hold an initial public offering of up to 20 per cent of shares in regional power firm Kot Addu Power Co (KAPCO) next month at a price of Rs30 per share, the Privatisation Commission (PC) said on Monday.

The government will offer 88.025 million shares, or 10 per cent of the total, with a green shoe option of another 10 per cent, in lots of 500 from Feb 7, the Commission said in a statement.

It plans to raise as much as Rs5.28 billion ($88.8 million) from the sale. The IPO has been delayed twice. It was initially planned for October, then pushed back to the end of December.