Rs. 35.4 billion was raised by Pakistani companies by initial public offerings (IPOs) and stock market rights (PSX) in 2020. Compared to Rs. 35.7 billion earned in 2019, this is roughly the same, claimed a study released on Wednesday by the brokerage house Topline Securities.
In spite of the COVID-19 outbreak, the stock exchange witnessed four IPOs (including a preference share listing) during the year, where the total amount raised clocked in at Rs. 8.4 billion. This year’s amount of equity IPOs is the largest in the last five years.
PSX witnessed only one IPO of Rs. 5 billion in 2019.
The Organic Meat (TOMCL) provided the highest total return of 50 percent followed by Agha Steel’s (AGHA) return of 15 percent. After its listing, TPL Trakker (TPLT) has lost 17 percent of its value.
In 2020, 14 companies raised Rs. 27 billion on the Rights Issues by Right Shares with Fauji Fertilizer Bin Qasim (FFBL) with the highest sum of Rs. 5 billion, followed by Rs. 4.7 billion in Searle Pakistan (SEARL) rights and Unity Foods (UNITY) closely trailing behind with Rs. 4.5 billion rights.
In contrast, 17 firms raised Rs. 30 billion by Right Shares in 2019, with Hascol Petroleum (HASCOL) taking the highest sum of Rs. 8 billion, followed by Rs. 7 billion from Hub Power (HUBC) and Rs. 6 billion from Maple Leaf Cement (MLCF).
Regarding the prospects for the calendar year 2021, the study said that many equity IPOs are in the pipeline with an improving outlook on the stock market. Seven companies have already reported Right Shares amounting to Rs. 16 billion, including Shell Petroleum (SHEL).