KARACHI: K-Electric (KE) successfully concluded its initial public offering (IPO) on September 3, raising Rs2 billion as bids exceeded the target by 2.2 times, according to CEO Moonis Alvi.
The KE Retail Sukuk attracted strong interest from over 600 retail applicants and institutional investors. In the pre-IPO phase, worth Rs1 billion, subscriptions came primarily from KE’s industrial and large commercial consumers, alongside high-net-worth individuals.
The Sukuk also offers a unique feature: residential and commercial consumers can opt to adjust their electricity bills against monthly profits earned from the investment.
At the closing ceremony, PSX Managing Director and CEO Farrukh H. Sabzwari highlighted the need for greater financial innovation and broader participation in Pakistan’s capital markets. “We have a low number of retail investors, even though they can begin with just Rs5,000,” he said. “Today, we are comparing ourselves with Sri Lanka and Bangladesh, whereas 10 to 15 years ago, we stood alongside India.”
The oversubscription reflects strong investor confidence in KE’s financial instruments, providing the utility with much-needed liquidity to support its operational and working capital requirements.
