IPO oversubscribed: KE concludes issuance of retail listed short-term Sukuk
- Sukuk gives option for bill adjustments against monthly profits
The K-Electric (KE) successfully concluded the Initial Public Offering (IPO) of “Pakistan’s first” retail listed short-term Sukuk, attracting 2.2x times more bids than its target of Rs2 billion, read a press release, adding the funds have been raised to meet KE’s operational and working capital requirements.
The process concluded on Wednesday with participation from over 600 retail applicants and institutional investors, injecting Rs4.4 billion.
“This reflects investor confidence not only in K-Electric’s performance, growth plans, and future outlook, but also in the promise of Islamic finance as a trustworthy and inclusive investment avenue,” the KE said.
By promoting Islamic finance at the household and individual participation level, it creates broader access to investment opportunities, strengthens financial inclusion, and channels domestic savings into productive assets, it said, adding this in turn provides a significant boost to Pakistan’s capital markets, supports their listing and development, and enhances the overall vibrancy and resilience of the national economy.
Muhammad Aamir Ghaziani, CFO at K-Electric, said: “By broadening access to investment opportunities, Islamic finance is helping deepen Pakistan’s capital markets, strengthen financial inclusion, and enhance overall economic vibrancy.”
The IPO opened on August 4, and offered individuals across Pakistan, including KE’s residential and commercial consumers, the opportunity to invest in this financial product.
During the blackout phase, only individual investors could participate. However, from August 18 onwards, the IPO opened to all types of investors, including asset management companies.
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The pre-IPO phase, amounting to Rs1 billion, was specifically tailored for KE’s industrial and large commercial consumers, as well as high-net-worth individuals.
“A unique feature of this Sukuk was the option for bill adjustments against monthly profits for KE’s residential and commercial consumers,” read the PR.
The Sukuk operates under a Shirkat-ul-Aqd Islamic structure, allowing investors to directly participate in KE’s core business operations related to electricity provision, it maintained.