The Securities and Exchange Commission of Pakistan will encourage listing of a company’s securities on an exchange through initial public offering (IPO), which means the first allocation of newly issued shares and debt, to the public.
It is so as companies with good track record, credible sponsors, experienced management and operating in a strong industry can easily tap the capital markets for generating the resources required for growth, the SCEP said in a press statement here Friday.
Generally, such companies are welcomed by capital markets and maintain investor’s confidence, it added.
The SECP said for the last couple of years, it had assumed a more vigilant role and had also forced Pakistan Stock Exchange (PSX) to play its due role in promoting quality listings. To promote ease of doing business, the SECP had also expedited its approval processing time and approved the last three IPO applications within five working days after their receipt, it added.
Being the front line regulator, it said the PSX had the prime responsibility to promote quality listing considering the interest of all the stakeholders including general public and the issuers.