#1Listing on Pakistan Stock Exchange Your Avenue for Progress PSX#2Contents of the Presentation: Psx Introduction Benefits Of Listing Successfully Listed Listing Requirements Annual listing fee Listing Procedure Contact Details 2#3PSX Introduction 3#4What is an IPO? Psx IPO An initial public offering (IPO) is the process where a company issues a stake of its ownership to the public for the first time. Investors who wish to gain ownership in a company subscribe to the company's shares. 4#5PSX Benefits Of Listing 5#6Why should you list on PSX? Psx Raise Long Term Low-cost Capital Growth and expansion needs Invest or carry out merger & acquisition plans Invest in new projects Enhance current capacity ☐ Diversify business ☐ Meets working capital requirements Inclusion in Indices Inexpensive Financing The PSX has several indices like KSE 100, a benchmark used by investors all around the world to measure Pakistan's performance. Listing will give you the chance to be included in these indices, providing you with global recognition. Money raised through offering your company's share on the bourse is relatively inexpensive, especially in a rising interest rate environment, helping organizations reduce their dependence on costly long term and short term loans. $ $ 6#7Why should you list on PSX? C!I Psx Enhances Company's Public Profile Tax Credit • Improved Relations with Bankers and Suppliers IPOS add a level of prestige to a Company IPOs can be used as a branding and marketing tool as they attract media interest, attention and scrutiny Listed companies on the Exchange are regarded as Industry leaders in their respective sectors. 20% on tax payable in the first year of listing 20% on tax payable in the subsequent first tax year of listing 10% on tax payable in the following two tax years respectively A listed company has to disclose and disseminate all material and price sensitive financial information which adds to: The business transparency Improved relations with Bankers, lenders and clients TAX ས 7#8Why should you list on PSX? Psx HR Capital Higher Valuation Attract and retain the best talent for your company because of enhanced reputation. By going public, all stakeholders involved use fair valuation of the company by the market which is generally higher than the book value, outlining the true worth of an organization. Listing bridges any discord that may arise during a Business Continuity and transition from the first generation to the next, by Succession Planning introducing Corporate Governance Structures Succession Planning 8#9PSX Listing Requirements 6#10What is the Eligibility Criteria? Psx Main Board • Minimum post-issue paid up capital of Rs.200 Million SME Board • Post-issue paid up capital between Rs.25 - 200 Million 10#11What are the mandatory requirements? Psx Financial Statements • Must prepare periodic Financial statements. • Must audit statements by QCR (Quality Control Review) rated chartered accountants. • Must publish on the website SME Website • Must contain basic business information. • Must contain prospectus • Must post annual, half-year quarterly accounts. Operational Requirements • Must be in business for at least three years. •Must be profitable for at least two preceding years before getting listed. JL 11#12PSX Annual Listing Fee 12 12#13What is the Listing Fees? Psx Initial Listing Fees • One tenth of 1% of Paid Up Capital Capped at PKR 1.5 Million Annual Listing Fees Annual Rate for FY 2018-19 • Annual Rate for FY 2019-20 •Capped at PKR 3 Million 13#14What is the Listing Fees? Annual Listing Fees Psx FY 2018-19 FY 2019-20 Companies Having Market Capitalization As On June 30 Up to Rs.100 million Above Rs.100 million & up to Rs.250 million Above Rs.250 million & up to Rs.500 million Above Rs.500 million & up to Rs.1,000 million Above Rs.1,000 million & up to Rs.2,000 million Above Rs.2,000 million & up to Rs.10,000 million Above Rs.10,000 million & up to Rs. 20,000 million Above Rs.20,000 million & up to Rs.50,000 million Above Rs.50,000 million Rate Of Fee Per Annum Rs.100,000 Rs.100,000+0.075% on excess over Rs.100 million Rs.212,500+0.045% on excess over Rs.250 million Rs.325,000+0.02% on excess over Rs.500 million Rs.425,000+0.01% on Rs.525,000+0.0045% on excess over Rs.2,000 million Rs.885,000+0.001% on excess over Rs.10,000 million Rs.985,000+0.0004% on excess over Rs. 20,000 million Rs.1,105,000+0.0003% on excess over Rs.50,000 million Companies Having Market Capitalization As On June 30 Up to Rs.100 million Above Rs.100 million & up to Rs.250 million Above Rs.250 million & up to Rs.500 million Above Rs.500 million & up to Rs.1,000 million Above Rs.1,000 million & up to Rs.2,000 million Above Rs.2,000 million & up to Rs.10,000 million Above Rs.10,000 million & up to Rs.20,000 million Above Rs.20,000 million & up to Rs.50,000 million Above Rs.50,000 million Rate Of Fee Per Annum Rs.100,000 Rs.100,000+0.075% on excess over Rs.100 million Rs.212,500+0.06% on excess over Rs.250 million Rs.362,500+0.025% on excess over Rs.500 million Rs.487,500+0.015% on excess over Rs.1,000 million Rs.637,500+0.0065% on excess over Rs.2,000 million Rs.1157,500+0.0025% on excess over Rs.10,000 million Rs.1407,500+0.00075% on excess over Rs.20,000 million Rs.1,632,000+0.0005% on excess over Rs.50,000 million 14#15PSX Listing Procedure 15#16How can you get your company listed on the Exchange? Procedure Timeline • Your Company appoints a "Consultant" and completes submission of all documents. Time Varies Initial review of your Company and necessary due diligence to ensure adequate disclosures in the prospectus •On behalf of the Exchange, the PSX Listing Committee allows approval of your listing application. One Month (Approx.) Approval valid for Sixty days •SECP give approval of your prospectus. One Month (Approx.) • Public offer is held through fixed price or book building method Seven to ten days (Approx.) Psx • Your Company is formally listed on the Exchange Soon After Public Subscription 16#17Contact Information PSX Marketing and Business Development Karachi Haris Saeed - Business Development Manager Email: [email protected] Telephone: +92-2135274574 Ext: 4582 Lahore Sarmad Hussain - Regional Head Email: Sarmad. [email protected] Telephone: 111-001-122 Ext. 4653| Direct: 021- 2894653 Islamabad Asghar Abbas Naqvi - Regional Head Email: [email protected] Telephone: 111-001-122 Ext. 4666| Direct: 051- 2894666 Help Desk (92-21) 111-011-122 Email: [email protected] 17#18Contact Information Serving Investors & Industry Stock Exchange Building, Stock Exchange Road, Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk PSX 18