KARACHI: The ongoing process for the sale of 20 per cent shares in the Pakistan Stock Exchange (PSX) marks the culmination of the demutualisation process of the bourse.

According to the time frame, the entire process is scheduled to be completed by the end of June.

Today is the second and final day of the book-building process for the sale of 140 million shares of the PSX to high net-worth individuals/institutional investors. The offer has been made at the floor price of Rs28 per share.

Firm figures for the first day of book-building on Tuesday were not available, but market participants said bidders usually wait for the closing hours of the final day before putting in their bids.

At the strike price to be determined through book-building, the remaining 40.074m shares – which form a quarter of total 160.295m shares on offer – will be floated in an Initial Public Offering (IPO) for public subscription.

“Any shares that remain unsubscribed by the general public will be allocated on a pro rata basis to successful investors as per the book-building process,” the PSX said in a statement on Tuesday.

“This public offering of shares of the exchange will be the second offering of exchange securities in South Asia after Bombay Stock Exchange offered shares to the public four months back, which was highly oversubscribed,” the statement said.

Earlier, a Chinese-led consortium had bought 40pc strategic shares of the PSX at the same price of Rs28 per share. Another 40pc shares vests with stock brokers.

“It is hoped that after the institutional/public issue of 20pc PSX stock, the ownership of the exchange will be separated from its management and the dominance of any one party at the exchange will be brought to an end,” said a market watcher.

Published in Dawn, June 7th, 2017