KARACHI, Oct 19: Karachi Stock Exchange announced on Friday that the Board had decided to suspend trading in certificates of Fayzan Manufacturing Modaraba with effect from Monday, October 22.

The stock exchange said that the board had taken the decision in exercise of its powers under Regulation No 4 of the ‘Regulations for Trading in the Provisionally Listed Companies’. And the move was spurred due to what the exchange said was “non-holding of ballot, for the allotment of certificates of Fayzan Manufacturing Modaraba.”

Interestingly, the public offer of 54 million certificates of the value of Rs540 million made on October 9 and 10, has remained undersubscribed. That would mean that all of the applicants would receive the certificates and a balloting was not due, in the first place.

The misunderstanding that prompted the Exchange to object to “non-holding of ballot” possibly was due to the inability of modaraba to furnish the figures of subscription. Company Secretary, Mohammed Sohail Khan did mention to Dawn in passing that the issue had been undersubscribed but until Friday afternoon he said he did not have all of the figures. He did, however, admit that nine days were too many, for the issuers, to have compiled and announced the final numbers.

Fayzan Manufacturing Modaraba—the first manufacturing modaraba in the country—has been set up for the specific purpose of setting up the Additional Plant to manufacture PSF and/or its variant for ICI. The Modaraba is initially for a period of five and half years, commencing from signing of the Licence Agreement with ICI on March 28, 2001. The manufacturing facility would be operated, under the Toll Manufacturing Agreement between the Modaraba and ICI.

Of the total paid-up capital of Rs900 million of the Fayzan Manufacturing Modaraba, sponsors have already subscribed Rs360 million. Faysal Management Services (Pvt) Limited, which is the management company of the Modaraba has made the largest contribution of Rs180 million, followed by subscription of Rs54 million each by Faysal Bank Limited; Al Faysal Investment Bank Limited and Al-Meezan Investment Bank Limited. Pak Kuwait Investment Company (Pvt) Limited has placed Rs18 million to the equity.

Both the chairman and CEO at Fayzan Manufacturing Modaraba are nominees of Faysal Bank, while two directors represent each, Al Faysal Investment Bank and Al-Meezan Investment Bank. Pak Kuwait Investment is represented by one member on the seven-member board.