KARACHI: The Pakistan Stock Exchange (PSX) would stand listed on the bourse by the end of June, Shahzad Chamdia, chairman of the stock market’s divestment committee, told Dawn on Thursday.

The stock market signed a sale and purchase agreement last month with a Chinese consortium that won the bid for a 40 per cent stake in the PSX by putting $85 million (or Rs28 per share) on the table. The stake on sale translates into 320m shares.

The proceeds, which were earlier expected by Feb 10, would be received by the end of the month, Mr Chamdia said.

With 40pc shares of the PSX already distributed to the original owners — the 200-strong stockbroker fraternity — and another 40pc sold to the Chinese consortium, the remaining 20pc shares of the bourse are to be offered to the public in an initial public offering (IPO).

A specific date for the IPO has not been specified, but Mr Chamdia affirmed that the entire divestment is targeted to be completed by end-June.

He said the restructured 10-member board of directors of the PSX after the induction of strategic investors would comprise four nominations each by the Chinese partners and brokers. The remaining two members on the board would be nominated by the Securities and Exchange Commission of Pakistan (SECP), which currently holds six seats. This means the apex regulator would concede four of its seats to the Chinese investors.

But the newly drafted articles of association of the PSX stipulate that the number of elected directors and those nominated by the SECP would stand on a par with each other. That would require raising the total number of directors on the board to 16, providing space for the induction of six more nominees by the apex regulator.

Published in Dawn, February 24th, 2017

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