Latest news with #PublicOfferingRegulations
Business Recorder
2 days ago
- Business
- Business Recorder
Effective from Aug 6th: SECP revises IPO regime
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced revised public offering regime, effective from August 6, 2025, and future initial public offering (IPO) transactions shall be executed in accordance with the amended regulations. The SECP has issued S.R.O.1477(I)/2025 and S.R.O 1476(I)/2025 to amend Public Offering Regulations, 2017 and Public Offering (Regulated Securities Activities Licensing) Regulations, 2017 respectively. In this regard, the SECP has notified the final amendments to the public offering regime. The regime — comprising the Public Offering Regulations, 2017 and the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017—governs the offer of equity securities, debt instruments, and units of REIT schemes to the general public. The revamped regime has become effective from the date of notification, i.e., August 6, 2025. Future IPO transactions shall be executed in accordance with the amended regulations. The SECP had earlier approved amendments to the public offering regime following wide-ranging stakeholder consultations. The updated regulations aim to optimize the IPO experience for issuers and investors by promoting competition, leveraging technology, improving transparency, and introducing a more robust and inclusive price discovery mechanism in the capital market. Key changes include permitting banks and DFIs to act as Consultants to the Issue for equity offerings, as well as introducing a more transparent price discovery process by replacing the single book runner model with the concept of 'Eligible Participant,' enabling wider investor participation. Notifications for the final amendments are available on the SECP website. Copyright Business Recorder, 2025
Business Recorder
18-07-2025
- Business
- Business Recorder
SECP revises framework for public offering regime
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revised the framework for public offering regime to enhance competition, leverage technology, improve transparency, and introduce a more robust and inclusive price discovery mechanism in the capital market. The SECP has approved amendments to the public offering regime. The revised framework, finalized after wide-ranging stakeholder consultations. The public offering regime—comprising the Public Offering Regulations, 2017 and the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017, governs the public offering of equity securities, debt instruments, and units of Real Estate Investment Trust (REIT) Schemes. The amendments aim to address both demand- and supply-side challenges for initial public offerings (IPOs), eliminate duplication in listing and prospectus applications, and facilitate issuers in achieving faster and more cost-efficient access to capital markets. Key changes include the introduction of a more transparent price discovery mechanism through wider investor participation by replacing the single book runner with the concept of 'Eligible Participant.' This allows securities brokers, mutual funds, and banks to submit bids directly during book building. The minimum bid amount has been increased from Rs. 1 million to Rs. 2 million. The Consultant to the Issue (CTI) is now empowered to determine the price band using appropriate valuation models, with justification to be disclosed in the Prospectus. The requirement for 100 percent book building has been withdrawn to encourage independent underwriters' participation in the retail IPO portion. A new clawback provision permits up to a 10% increase in retail allocation in case of oversubscription by retail investors. The role of CTI has been strengthened to ensure more rigorous evaluation of issuers and offering documents. Banks and DFIs are permitted to act as CTIs for equity offerings. If a bank/DFI fails to establish a separate subsidiary for the CTI function within five years, it may only act as CTI in consortium with another securities broker licensed as a CTI. Secondary offerings and public issuance of debt are facilitated through rationalized disclosures and optional CTI appointments. A standardized due diligence certificate format has also been introduced. To broaden the investible universe, a separate chapter has been added for REIT offerings and a framework introduced for general public participation in GEM Board listings. Amendments also include a revised process for approval of supplement to the prospectus in shelf registration and provide a framework for issuance and listing of equity securities outside Pakistan. To promote transparency and improve digital access, amendments have been made to strengthen disclosure requirements, mandate the use of QR codes, allow electronic signatures, facilitate online filings through the PRIDE portal and discontinue physical applications from September 1, 2025 These amendments reaffirm SECP's commitment to strengthening capital markets, fostering capital formation, and promoting a more efficient, inclusive, and technology-driven public offering regime in Pakistan. Copyright Business Recorder, 2025
