CDC makes state-run companies listing cost effective

The Central Depository Company (CDC) has played a pivotal role in placing shares of state-run companies at the Central Depository System, making cost effective both for issuers and investors.
According to an information received from CDC, the current policy of government to privatise huge national organisations through stock exchanges has been made possible greatly due to the infrastructure provided by CDC.
The unmatchable benefits of getting direct credit into the system (electronic book entry) have made these privatisation efforts not only highly efficient, but also cost effective for both Issuers as well as Investors.
These benefits include instant credit of shares, greater marketability/liquidity, stamp duty and postage cost savings, reduced workload and costs for issuers, no time delays for investors, convenient accommodation of huge volume issues in the capital market, etc.
Having successfully inducted most of the listed securities in the Central Depository System (CDS) over the last few years, CDC enjoys high level of market confidence in its depository services.
The much awaited, initial public offering of OGDCL, being the largest government divestment so far, was very well responded by the investors.
CDC feels proud that 60.84 percent of the total IPO (10 percent of the total issue) was subscribed in electronic form directly into 30,662 CDS accounts, which signifies the confidence of investors in our services.
Thus, it would not be unfair to state that such smooth and convenient handling of this voluminous issue would not have been possible without CDC as the electronic book entry system had brought in tremendous cost reduction and efficiency in subscription processes.
The subsequent government divestment venture of SSGC was again very well responded by the investors where 24,538,000 shares were directly credited in CDS out of the total of 67,117,432 shares into 24,538 CDS accounts.
These public offering decisions by the government are encouraging more and more retail investor to participate in the capital markets of the country.
The CDC is pleased to be a part of this process and hope that more such public offerings will come in near future enabling us to serve the market better and to move closer to our mission of making the capital markets of Pakistan the hub of financial activities in the region.