KARACHI: K-Electric has successfully raised Rs4.4 billion through Pakistan’s first listed short-term sukuk for retail investors, more than doubling its initial target of Rs2 billion.
The Initial Public Offering (IPO), which closed on Wednesday, attracted strong interest from both institutional and retail investors, with over 600 individual applicants participating. Proceeds from the sukuk will be used to meet KE’s operational needs and working capital requirements.
In its statement, KE highlighted the IPO as a milestone in advancing Islamic finance and widening financial inclusion. “This offering broadens access to investment opportunities, channels domestic savings into productive assets, and enhances the vibrancy of Pakistan’s capital markets,” the company said.
The IPO opened on August 4 exclusively for individual investors, including KE’s residential and commercial consumers, before being extended to all investor categories on August 18. Ahead of the public subscription, a Rs1bn pre-IPO placement was made with industrial and large commercial consumers, as well as high-net-worth individuals.
A unique feature of the sukuk was its utility-linked structure, allowing KE’s residential and commercial customers to offset monthly profit payouts against their electricity bills — a first-of-its-kind facility designed to boost participation and convenience.
