​PSX To Allow SMEs To Raise Equity Capital After Listing

Pakistan Stock Exchange is finalizing the launch of its Small and Medium Enterprises (SME) Board – a platform for SMEs to raise equity capital to fund their growth and expansion needs.

Accordingly, a public company with post issue paid up capital of not less than Rs. 25 million and not more than Rs. 200 million is eligible to get listed on the SME Board.

To promote the SME sector and to encourage them to get listed on the SME Board, PSX has endeavored to make the listing procedure simple and easy.

To reduce the listing cost, initial listing fees of the exchange have been capped at Rs. 50,000. At the same time, a number of steps have been taken by PSX to protect and safeguard the investors.

A capital lock-in period has been defined for sponsor’s shareholding, i.e. the sponsors would have to retain their entire shareholding in the listed SME for one year and, for the next two years, they would have to retain at least 25% of the paid up capital of the SME.

The SME would have to prepare periodic financial statements and have them audited by a QCR rated chartered accountant firm. The SME would also have to show the true and fair position of their business to investors.

PSX Signs MoU With GCCI

PSX signed a Memorandum of Understanding (MoU) with Gilgit Baltistan Chamber of Commerce and Industry (GBCCI) for mutual cooperation and collaboration. The agreement will facilitate access to equity financing for Small and Medium Enterprises (SMEs) in the GB region.

Mr. Imran Ali, President of GBCCI, and Mr. Asghar Abbas Naqvi, PSX Regional Incharge of Islamabad signed the MoU.  The team designated by PSX to promote mutual collaboration include Mr. Sarmad Hussain, Regional Head Lahore, Mr. Asghar Abbas Naqvi, Regional Head Islamabad, Mr. Muhammad Abdullah, Head of Special Projects, Ms. Asmaa Saleem Malik, Manager Operations, and Mr. Imran Lakhani, Officer Special Projects.

An Awareness Session was also held to promote the SME Board. The Chief Guest in the Awareness Session was the Governor of Gilgit Baltistan, Mr. Mir Ghazanfar Ali Khan. The Awareness Session was well attended including women entrepreneurs, distinguished businessmen based in Gilgit Baltistan, members of the Executive Committee of GBCCI and representatives of Zahid Latif Khan Securities.

The Governor of Gilgit Baltistan requested the officials of PSX to introduce special packages for investors and the business community there. He believed that this would help in generating job opportunities for the residents of Gilgit Baltistan.

It was mutually agreed that PSX and GBCCI would hold joint Awareness Sessions to promote the SME Board. Representatives of SECP and brokerage houses would be invited to take part in such awareness sessions.  GBCCI agreed to draft feasibility studies of viable businesses in Gilgit Baltistan, which have good future prospects, in consultation with the business owners.

The feasibility studies would later be shared with investors throughout Pakistan who are interested in investing in local businesses.  It was also agreed that the existing consultants of Gilgit Baltistan would be introduced to other experienced TREC Holders. The aim would be to develop a specialized pool of consultants in Gilgit Baltistan.  Women entrepreneurs who attended the Awareness Session showed a keen interest in opening a brokerage account and also in expanding their own businesses.

Some industries in Gilgit Baltistan, such as the mining industry, gem stones industry, trout fish farming industry, apricot export industry, etc have immense potential. With adequate support and funding, these industries can grow and contribute immensely to the national exchequer.​