KARACHI: The initial public offering (IPO) of Al Shaheer Corporation Ltd is under way at the Karachi Stock Exchange, the SECP said in a press release issued on Wednesday.

It observed that the phase of book-building has been completed in which the company offered 18.75 million shares to institutional and high net worth individuals. The second phase of public offering is scheduled for July 27-29, when the company will offer shares to common investors.

The SECP stated that concerns had been raised on the price discovery mechanism, adopted for the institutional bidding of Al Shaheer Corporation.

The commission denied that upper cap was removed to the benefit of certain shareholders of the company.

“However, as a regular practice, the SECP is reviewing bidding pattern during the book-building process to ascertain any wrongdoings. Strict action would be taken against those found in violation of framework or engaged in manipulative practices,” SECP stated in its press release.

The SECP said that the concept of price band was introduced in last July.

“However, it was later removed as it was hindering fair price discovery and causing operational problems.”

Furthermore, the price determination in stock markets is not the SECP’s concern, as long as the trading practices are fair and transparent.

A stock exchange is a free market where prices are always determined through fundamental concept of demand and supply and investors views about the business and financial prospects of the company, the commission argued in the press release.

Published in Dawn, July 2nd, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play