The Pakistan Software Export Board (PSEB) has appointed AKD Securities Limited as financial advisor for the first eight companies as it aims to list 40 IT/ITeS-related small and medium enterprises on the Growth Enterprise Market (GEM) Board of the Pakistan Stock Exchange (PSX).
“As per the mandate given by the Ministry of Information Technology, the PSEB has launched its initiative to provide easy access to capital markets for small and medium IT based enterprises via Initial Offering on the GEM Board of the PSX,” it said in a press release.
GEM Board is a listing platform aimed at facilitating growth-oriented businesses where small, medium, or green-field businesses raise capital to fund their growth and expansion plans.
The PSEB said it aims to list 40 IT/ITeS companies on the GEM Board of PSX, to whom it will extend significant financial and technical assistance in raising capital via listing on PSX GEM Board.
“To incentivize these companies to get themselves listed, PSEB is bearing 70% of the cost associated with the GEM Board Listing, with only 30% of GEM Board Listing costs being borne by the Company.
“For the inaugural listing under the auspices of PSEB, AKD Securities Limited has been nominated for the initial eight (08) companies.”
The event was attended by PSX CEO Farrukh H. Khan who stated, “This initiative is a stepping stone to the existing GEM Board structure and would definitely create an environment that encourages small and medium enterprises to consider GEM board as a route for raising smart capital .”
Speaking on the occasion, Managing Director PSEB Osman Nasir said that Pakistan is on the verge of witnessing an IT revolution through technology startups riding the wave for the country.
“Considering this potential, PSEB’s initiative is commendable as it would provide an avenue for IT/ITES companies to execute their long-term goals through access to equity financing,” Nasir added.
Farid Alam, CEO AKD Securities Limited, said the brokerage firm has always been a promoter of new initiatives in the capital market which is also evident through its inaugural listing at the GEM Board.
“As the Financial Advisor to the project, AKDS would market the opportunity to the larger audience and garner their interest in raising capital through listing on this board.”
Talib Baloch, Program Director of PSEB, also attended the event.
“As per our mandate, PSEB has been constantly working on supporting IT/ITES companies through various initiatives. We believe that listing such entities on the local stock exchange would not only raise capital at micro level but also support the entire financial ecosystem,” said Baloch.