Pak-Qatar Family Takaful PSX IPO debut: shares stuck to minimum price at Rs14

Pak-Qatar Family Takaful Limited (PQFTL) share price remained stick at the minimum offered price at Rs14 per share on the first day, Thursday, of the two-day Dutch bidding process at the Pakistan Stock Exchange (PSX), as it put 50 million share on sale to attract investment for business expansion.

The share price can increase by a maximum 50% to Rs21 per share from the minimum (floor) price of Rs14 per share in the two-day book building process ending on Friday.

The PSX book building screen shows the institutional and high-net worth individual investors placing bids in the range of Rs14 per share to Rs15.40 per share on Thursday. The book building process, however, suggested the first strike price came at Rs14 per share on the first day.

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The Shariah-compliant family insurance firm received bids for 42.33 million shares against 37.5 million shares (or 75% of 50 million shares) offered to the institutional and high-net worth individual investors through the Dutch bidding/ book building process.

Remaining 12.5 million shares (or 25%) would be offered to retail investors at the strike-price to be determined by Friday’s evening, the company said in its prospectus for the ongoing IPO (initial public offering) available at the PSX website.

PQFTL has aimed to attract investment in the range of Rs700 million to Rs1.05 billion, depending upon the strike-price to be discovered between the floor price of Rs14 and cap price of Rs21.

Shahid Ali Habib, CEO, Arif Habib Limited (AHL) - the lead book runner - said in a press statement the other day that proceeds from the IPO would help Pak-Qatar Family Takaful meet minimum capital requirements, expand its digital channels, and develop more customer-focused products.

The company, which has strong backing from Qatar’s financial sector, plans to use the proceeds to expand its operations and product offerings in Pakistan’s rapidly growing insurance market, according to Habib.

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“Pak-Qatar Family Takaful holds a 44% market share of the family takaful (including Window takaful) sector and a 90.47% market share of the dedicated family takaful segment,” the statement read.

In 2024, Pakistan’s insurance penetration remained low at 0.7%, though rising education and better economic conditions suggest strong future growth potential, according to the statement. “The global insurance industry has grown rapidly but unevenly, with advanced economies seeing over 10% penetration, while emerging markets in EMEA and Asia lag behind.”