Under the demutualization process, some 40 percent stakes of Karachi Stock Exchange (KSE) will be sold to strategic investors, said Muneer Kamal, chairman KSE. Briefing the delegation of China Investment Corporation (CIC) during its visit to KSE on Monday, he said that on May 7, 2012, the President of Pakistan signed the Demutualization, corporatization and Integration of Stock Exchanges Act and later on August 23 this year the KSE was demutualized and re-registered with the Securities and Exchange Commission of Pakistan (SECP) as a company.
"As per demutualization process, within 24 months of corporatization, 40 percent stakes with management control has to be sold to a strategic investor, while some 20 percent will be offered to the general public via listing on a domestic exchange and 40 percent remaining stake will be of the previous members," he informed.
Strategic investors has been defined as reputable international entity with 10 years' experience and it must be a stock exchange, commodity exchange, future exchange or depository company, he added. He said that KSE was on top in 10-year average annual return as its return stood at 30 percent compared to 19 percent of gold and 11 percent of defence saving certificates.
The earnings in KSE-100 Index advanced 45 percent during the past year, the largest gain among 17 Asian indexes. While dividends in Pakistan also climbed at the fastest pace in the region, as KSE 100 Index has dividend yield of 6.6 percent double the 3.3 percent average in Asia, he informed.
The chairman said that foreign investors were taking interest in KSE as they have purchased a net $153 million of Pakistan shares since July 1 this year and overseas holding amount to about 20 percent of listed companies free floated. "Prior to demutualization, KSE was owned by 200 members and presently active members stood at 135, while nearly 600 companies are listed on the KSE. Market capitalisation currently stands at 43 billion and it was all time high at 75 billion dollar in March 2008.
On the occasion, President CIC, Gao Xiqing, performed the Gong ceremony that heralds the commencement of the trading session at KSE. On arrival, the delegation was received by the Chairman KSE, Muneer Kamal and Managing Director, Nadeem Naqvi. CIC delegation takes interest in presentation and asked several questions.
Source: Business Recorder
