KARACHI: K-Electric has successfully concluded the Initial Public Offering (IPO) of Pakistan’s first listed short-term sukuk for retail investors, raising Rs2 billion. The IPO had attracted applications worth over Rs4.4bn, oversubscribing the offer by 2.2 times.

The offering, which closed on Wednesday, saw strong participation from both institutional and retail investors, including over 600 individual applicants. The funds raised will support KE’s operational needs and working capital requirements.

In a statement, KE said the sukuk IPO marks a significant step towards promoting Islamic finance at the household and individual level. “It creates broader access to investment opportunities, strengthens financial inclusion, and channels domestic savings into productive assets,” the company noted. This, it added, enhances the vibrancy and resilience of Pakistan’s capital markets.

The offering opened on Aug 4, enabling individuals — including KE’s residential and commercial consumers — to invest in the landmark financial instrument. During the blackout phase, participation was limited to individual investors, while from 18 August onward, the IPO was made accessible to all investor categories, including asset management companies. Prior to the public offering, a pre-IPO placement of Rs1bn was allocated for KE’s industrial and large commercial consumers, as well as high-net-worth individuals.

A distinctive feature of the Sukuk was its utility-linked structure. KE’s residential and commercial consumers were offered the option to adjust monthly profit payouts against their electricity bills, a move aimed at deepening financial participation and convenience.

Published in Dawn, September 5th, 2025

Correction: An earlier version of this report incorrectly stated that K-Electric raised Rs4.4 billion through its sukuk IPO. In fact, the company raised Rs2bn, the targeted amount, while the IPO was oversubscribed by 2.2 times.