The Treet Corporation Limited (TCL) is likely to launch "Participation Term Certificates (PTCs)" in March this year for a period of seven-year which would be redeemable, convertible and tradable at the bourses. The Corporation management has decided to give preference to the existing shareholders for providing PTCs at Rs 30/ with 100:50 proportion, said Aamir Raza, Chief Financial Officer of the Treet Corporation while speaking at the Corporate Briefing Programme organised by the Lahore Stock Exchange (LSE) on Friday.
The TCL Executive Director and Chief Operating Officer Muhammad Shafiq Anjum and Group Director Syed Shahryar Ali, the LSE Managing Director Aftab Ahmad Chaudhry were also present on the occasion.
"We are planning to replace our existing borrowings with more flexible financial product that should have salient features like flexibility linked to the profitability, tradability to improve liquidity, repayment of principal and creating value for the shareholders" he said. The certificates have been planned to provide to the existing shareholders in way of right shares, he maintained.
Aamir Raza further said that the principal amount would be repaid to the investors within seven years in addition to shares and profit on their investments. He also said that the minimum subscription of the PTCs is Rs 300 million while the capital is expected to be increased by 50 percent during the period of seven years. Talking about the publication of prospectus, he said that talks in this regard are underway with the Securities and Exchange Commission of Pakistan (SECP). As soon as the SECP grants approval, the prospectus would be sent directly to the existing shareholders, as it would not be published in newspapers, he clarified. While briefing about the Group's companies, he said the Corporation has already launched motorcycle last year while it is also considering feasibility of poultry business.
Speaking on the occasion, the LSE Managing Director Aftab Ahmad Chaudhry said there are about 600 companies listed with the stocks exchange out of which 30-40 have most liquidity. He stressed the need for broadening the shareholders' base and said we want to track potential companies for the purpose. He emphasised the companies to announce award of shares to their products' consumers rather than providing prizes through coupons for promotion of sale which would help increase shareholders in the country.