Agha Steel listed on PSX, gets big response
KARACHI: Agha Steel Industries Limited was listed on Pakistan Stock Exchange on Monday, witnessing over-subscription that shows increased confidence in the capital market by the investors mainly of small investors.
This listing was formally announced at the Gong ceremony held in the trading hall of the exchange. The PSX traditional bell (Gong) was jointly stricken by Chairman PSX Suleman Mehdi and ASIL's Chief Executive Officer, Hussain Agha to mark the beginning of daily trading.
Suleman Mehdi expressing his pleasure, said it was the largest listing/independent public offer in steel sector of the country and third IPO of the current fiscal year. With listing of ASIL, Rs 3.8 billion capital had been raised on the platform of Pakistan Stock Exchange, which would further built confidence of the investors in Pakistan's capital market despite apprehensions about the second wave of COVID-19 hitting many economies of the world very badly.
Due to timely and practical decisions of our government and regulatory authorities/institutions along with joint efforts of other stakeholders, Pakistan successfully managed the negative effects of COVID-19 pandemic's first wave. Similarly, he was confident, with same spirit and strategy the country would be capable to cope with its second wave.
Mehdi informed that more companies had applied to PSX for listing/IPO and hopefully good number of IPOs would be done in next 6 months. PSX had already introduced four exchange traded funds (ETFs) and more were expected in the near future. Besides, the existing would witness further growth. ETF is a collective investment vehicle with shares that trade on stock exchanges at a market-determined price. Buying or selling ETF shares is accommodated through a broker on the pattern of shares of any publicly traded company.
He said that PSX had done very good job with quick recovery from COVID-19 effects and so did the nation as a whole.
“Coming year seems bright for capital market," he was optimistic. - APP
PSX's Chief Executive Officer, Farukh H. Khan said that listing of such companies would provide opportunity to small investors and that it was very encouraging for the country's capital market and the economy.
He said that against many other countries, the COVID-19 and economic situations in Pakistan were much better. Pakistan's capital market was intact as the result wise government decisions including reducing interest rate and providing various other fiscal incentives to the businesses and industries.
He requested to the government to take more such steps and provide further incentives to strengthen the capital market, and trade and industry in the country with focus on increasing investment and exports.
To a question, he said a good number of companies from different sectors were in line for IPOs.
To another query, PSX's CEO said the setback to the exchange over last few days was mainly because of fear of second wave of COVID-19 pandemic as the situation had worsened in many countries.
ASIL's Chief Executive Officer, Hussain Agha said his company had vision of introducing latest technology in the backdrop of the boost and demand in real estate sector after unusual support and facilitation extended from Prime Minister Imran Khan and his team.
He said that after listing on PSX, ASIL's capital would significantly increase which would be utilized for the expansion in company's production capacity; from 4,00,000 tons rolling capacity to 6,50,000 tons.
CEO of Arif Habib Securities Limited, Shahid Habib described the listing of ASIL as very positive sign for the capital market, which had already witnessed 49 percent earning growth during first quarter of the current fiscal year (July-Sept) against the same period last year. - APP