A gong ceremony was held at the Pakistan Stock Exchange (PSX) on Tuesday to mark the successful listing of the Retail Listed Short-Term Sukuk that was issued by K-Electric, the only vertically integrated power utility in Pakistan that supplies electricity to Karachi and its adjoining areas.
The ceremony was attended by Farrukh H Sabzwari, MD & CEO of PSX, NCCPL CEO Naveed Qazi, CDC CEO Badiuddin Akber along with KE’s leadership including CEO Moonis Alvi, CFO Aamir Ghaziani, Company Secretary Rizwan Pesnani, KE’s board member Saad Amanullah Khan and the Shariah Advisors.
Moonis Alvi, the KE CEO, expressed his delight at the listing: “Alhamdulillah, KE’s Retail Listed Short-Term Sukuk received an overwhelming response – the IPO was oversubscribed by 2.2x times,” said Alvi. “We are thankful to the PSX, SECP, CDC, HBL, MTC and the Shariah Advisors for supporting us throughout the Retail Sukuk journey. We look forward to further collaborating with PSX and SECP to develop and strengthen the capital markets and pioneer more such capital market instruments.”
KE CFO Aamir Ghaziani said: “This innovative Sukuk instrument marks the beginning of a new chapter in broadening investor participation and deepening financial inclusion, as it has been designed to attract individual investors and strengthen Pakistan’s capital markets while promoting Islamic finance. The overwhelming response from all categories of investors particularly individuals and the fact that the instrument is tradeable (highly liquid) are features that mark its success.”
PSX MD and CEO Farrukh H. Sabzwari stated, “Unlocking the potential of capital markets in both developed and emerging markets relies on innovation. KE’s Sukuk is a prime example of such innovation, contributing to the growth of capital markets. A progressive and supportive regulatory framework enables the conception and launch of groundbreaking products, and this successful issuance is a testament to the power of collaboration fostered by the Securities and Exchange Commission of Pakistan. Therefore, my first thanks must go to them, followed by KE, which has not only diversified its own financing but also paved the way for other corporations to follow.”
The Initial Public Offering (IPO) of KE’s Sukuk had first opened on August 4, and offered individuals across Pakistan, including KE’s residential and commercial consumers, the opportunity to invest in this financial product. During this blackout phase, only individual investors could participate. However, from August 18 onwards, the IPO opened to all types of investors, including asset management companies.
KE concluded the IPO on September 3, attracting 2.2x times more bids than its target of PKR 2 billion. The amount was raised to meet KE’s operational and working capital requirements. KE Retail Sukuk saw participation from over 600 retail applicants and institutional investors.
The pre-IPO phase, amounting to Rs1 billion, was specifically tailored for KE’s industrial and large commercial consumers, as well as high-net-worth individuals.
A unique feature of this Sukuk was the option of bill adjustments against monthly profits for KE’s residential and commercial consumers. The Sukuk operates under a Shirkat-ul-Aqd Islamic structure, allowing investors to directly participate in KE’s core business operations related to electricity provision.
This process reflects investor confidence not only in K-Electric’s performance, growth plans, and future outlook, but also in the promise of Islamic finance as a trustworthy and inclusive investment avenue. By promoting Islamic finance at the household and individual participation level, it creates broader access to investment opportunities, strengthens financial inclusion, and channels domestic savings into productive assets. This in turn provides a significant boost to Pakistan’s capital markets, supports their listing and development, and enhances the overall vibrancy and resilience of the national economy.
KE appreciates the support of SECP, PSX, its investors, employees, and stakeholders in making this achievement possible and looks forward to delivering long-term value for its shareholders and customers alike.
