ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has highlighted the growing role of the capital market in financing business expansion and set a target of increasing the number of investors to 2.5 million.
The developments were discussed during the fourth session of the SECP Talk Series, where executives of three recently listed companies shared their initial public offering (IPO) experiences, capital-raising strategies and post-listing growth plans.
Service Long March Tyres attracted bids worth 85 billion Pakistani rupees and was 16.7 times oversubscribed, while Select Technologies raised 3.02 billion rupees through an IPO that was 3.23 times oversubscribed. The companies said proceeds were being used for capacity expansion, new projects and working capital.
The session featured Omar Saeed, CEO of Service Long March Tyres Ltd.; Zaheer Baig, CEO of Sitara Petroleum Service Ltd.; and Adnan Aftab, CEO of Select Technologies Ltd.
SECP Commissioner Muzaffar Ahmed Mirza said Pakistan’s population of about 255 million, with nearly two-thirds under the age of 30, offered significant investment potential. However, he said the capital market remained underpenetrated, with only around 500,000 to 600,000 investors, representing less than 1% of the population.
Mirza said the SECP aims to expand the investor base to 2.5 million by making market access easier and strengthening financial literacy initiatives.
Saeed said Service Long March Tyres, Pakistan’s first and largest manufacturer and exporter of TBR tyres, attracted more than 35,000 investors through its IPO.
He said IPO proceeds would contribute 24.6% of the funding for the company’s 22.56 billion-rupee passenger car radial tyre project, which is expected to have an annual production capacity of 2 million tyres.
Baig outlined Sitara Petroleum’s post-listing expansion plans, including the Gatti Oil Depot, Capital Smart Motors, electric vehicle charging infrastructure and a potential tyre manufacturing project. He said listing had provided the company with access to growth capital, improved valuation, greater credibility and increased institutional visibility.
Aftab said Select Technologies raised 3.02 billion rupees through its IPO to finance capacity expansion and working capital requirements. The offering was 3.23 times oversubscribed, while the company’s shares opened at a 21.4% premium on the Pakistan Stock Exchange.
During an interactive session, SECP Chairman Dr. Kabir Ahmed Sidhu said the commission was simplifying digital onboarding and developing a mobile-first application aimed at young and first-time investors.
Sidhu also highlighted the revamp of the Institute of Financial Markets of Pakistan as a national financial literacy platform and said the SECP was working on a separate legal framework to promote private equity and expand financing options for businesses.
