Participation Term Certificate: Treet Corp to raise Rs 1.255 billion
Treet Corporation Limited has announced to raise Rs 1.255 billion through issuance of Participation Term Certificate (PTC) to the existing shareholders of the company by way of Right Offer. In this regard, a road show was held on Monday at a local hotel to highlight the upcoming PTC being offered by the Treet Corporation Limited.
Copyright Business Recorder, 2012
The event was organised and conducted by AKD Securities Limited, the Financial Advisor and Arranger for the transaction.
The Chief Executive of AKD Securities Muhammad Farid Alam, briefed the audience about the structure, financial aspects, core benefits and investor rationale of the transaction. Management of the issuing company was represented by Amir Zia, Chief Financial Officer and Ayaz Ahmed, Company Secretary of Treet Corporation Limited.
He said that the Renounceable Offer Letter (ROL) will be traded on KATS for 30 working days, in the same manner that an unpaid Right Allotment Letter is traded. During this period any potential investor can buy the RIL on the prevailing market price at KATS while on further payment of Rs 30, the face value of each PTC, the ROL holder will become a PTC holder.
He said the PTC would provide an alternate instrument in the capital market and pioneering this level of financial innovation would enhance the corporate image and profile of Treet Corporation. This is the first Participation Term Certificate ever to be issued in Pakistan's capital markets and due to its innovative structure it would further encourage other listed entities to issue the same instrument for raising capital.
The event was attended by notable bankers, fund managers, high net worth individuals and senior investment analysts who appreciated the structure of the transaction and the investment opportunity being provided by Treet Corporation Limited along with its Financial Advisor and Arranger, AKD Securities Limited.