PACRA makes debut on PSX GEM Board with oversubscribed IPO

KARACHI: In a landmark development for Pakistan’s capital market, the Pakistan Credit Rating Agency Limited (PACRA) officially listed on the Pakistan Stock Exchange’s (PSX) Growth Enterprise Market (GEM) Board on Monday.

The occasion was marked by a gong ceremony held in Lahore, a move reflecting the Exchange’s strategy to engage regional business communities by hosting listing events in the cities where companies are based.

The ceremony was attended by senior officials from PSX, the Securities and Exchange Commission of Pakistan (SECP), PACRA, transaction advisors LSE Capital Limited, IEL, and other dignitaries.

Welcoming guests, PSX Chief Executive Officer Farrukh H Sabzwari underscored the Exchange’s efforts to broaden capital market access for businesses across the country. “I’m here today not just to mark PACRA’s important milestone, but to reinforce our commitment to expanding listing awareness at the grassroots level and to continue the practice of hosting listing ceremonies in the regions where companies operate,” he remarked.

Sabzwari further highlighted the resounding success of PACRA’s Initial Public Offering (IPO), which raised PKR 396.239 million, surpassing its target and receiving subscriptions exceeding four times the offered shares. He noted that the overwhelming investor response reflected growing confidence in both the capital market’s evolving ecosystem and PACRA’s standing as a trusted ratings institution. “This success speaks volumes about the credibility of the PSX platform and the trust investors place in companies accessing capital through it,” Sabzwari added. He also announced that PSX plans to hold an IPO roundtable in Peshawar as part of its broader effort to promote listings among regional businesses and SMEs.

PACRA’s listing marks the seventh addition to the PSX GEM Board, which was established as a dedicated platform for small and medium enterprises (SMEs) and growth-stage companies, offering a cost-effective and streamlined route for raising capital from the market.

Expressing pride on the occasion, PACRA CEO Usman Haider called the listing a defining moment in the company’s three-decade history. “For almost 30 years, PACRA has been a trusted partner in Pakistan’s capital markets, providing independent credit ratings and insights that foster transparency, investor confidence, and informed decision-making,” Haider stated. He added that becoming a listed company will introduce a new chapter of greater accountability, wider stakeholder engagement, and an even higher commitment to excellence.

Tariq Jamil, Chairman of PACRA, echoed the sentiment, describing the GEM Board as a forward-looking initiative vital for growth-oriented institutions. “We sincerely appreciate the efforts of PSX and SECP in facilitating institutions of our size and ambition, providing them with access to capital markets and the tools to fuel expansion,” Jamil remarked.

The IPO’s oversubscription by over four times was seen as a significant endorsement of PACRA’s credibility and market reputation.

Usman Haider extended special gratitude to the PACRA team, Board of Directors, Rating Committee members, and regulatory authorities for their support. “This milestone is a testament to the commitment, professionalism, and vision of everyone associated with PACRA.”

He also acknowledged the critical role of the SECP and the State Bank of Pakistan in shaping the country’s credit rating industry through their regulatory oversight. “We are sincerely grateful for their wisdom and foresight in guiding the sector’s evolution,” Haider added.

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