Securities and Exchange Commission of Pakistan (SECP) has allowed Pakistan Stock Exchange (PSX) to extend its share book building process for one more day.
PSX failed to get the desired bids due to a technical issue that affected the online portal set up for book building. Under the new deadline, now bidders can submit their offers till June 8. The bidding process will end after 5 pm today.
Sources told ProPakistani that for the book building process, Pakistan Stock Exchange (PSX) halted the bidding process due to its special online portal https://bkb.psx.com.pk/ going offline. The broken URL was restored after 4 hours. Bidders faced issues in opening the link and submitting their offers.
Investors were offered Rs. 28 (floor price) till Rs. 30 for one PSX ordinary share
As per the previous schedule, the book building process was to be completed by 5 pm on June 7. Now this time limit has been extended to June 8. However, bidders will have to register themselves by 3pm today.
Till the close of business on June 7, bids of 74,015,392 shares were received from 67 bidders. Furthermore, some 26 Institutional and High Net-Worth investors have registered themselves with MCB Bank Limited, the book runner, in order to participate in the PSX book building process.
About Book Building
The shares of PSX are being offered to High Net-Worth / Institutional Investors at a Floor price of Rs.28/- per share. In whole, 160,295,320 ordinary shares have been offered to the public for the book building process.
25% of the offer size i.e. 40,074,000 ordinary shares shall be offered to Retail Investors at the strike price determined through the book building mechanism. Any shares that remain unsubscribed by the general public shall be allocated at pro-rata to successful bidders as per the book building process.
What technical issue? I called around at the stock exchange and they said people were not very interested in the offer.
But strangely they said it was 30,00,000 for the book building, which is not a multiple of Rs 28.