Pak-Qatar Family Takaful Limited’s (PQFTL) IPO book-building has concluded with an impressive oversubscription of 3.2 times, marking the first-ever IPO of a dedicated Family Takaful company at PSX.
Investors responded strongly, with the strike price closing at Rs 18.02 per share, compared to the floor price of Rs 14. Total demand reached Rs 1.67 billion against the issue size of Rs 525 million, resulting in an equity raising of Rs 676 million.
Shahid Ali Habib, CEO of Arif Habib Limited and lead manager for the IPO, noted that this landmark offering marks the first-ever IPO in Pakistan’s Islamic insurance (Takaful) sector, reflecting strong market confidence in the company and its robust fundamentals.
Proceeds from the IPO will support PQFTL in meeting capital requirements, expanding digital channels, and developing new customer-focused Takaful products.
PQFTL is Pakistan’s first and largest dedicated Family Takaful operator, commanding a 44 per cent share of the overall family Takaful market and a dominant 90.47 per cent share of the dedicated family Takaful segment. It holds 6.6 per cent of the country’s total life insurance business.
Comprising a nationwide sales network with 73 branches and 1,971 field representatives, PQTFL offers personalised investment and takaful solutions across Pakistan. PQFTL also has strategic partnerships with 14 leading banks to offer protection solutions through bank branches and digital platforms.
Pak-Qatar Takaful:
Meanwhile the book building process of Pak Qatar Family Takaful Limited’s IPO started on December 11 and concluded on December 12.
During the process, the Pak-Qatar Takaful provided opportunity to high net worth individuals and institutional investors to lsubscribe to 100 per cent of the issue size.
The successful bidders, however, will be provisionally allotted only 75 per cent of the issue size, i.e., 37,500,000 shares. The company offered the remaining 25 per cent or 12,500,000 shares to the retail investors through the general public subscription. Through this IPO, PQFTL was aiming to raise Rs. 1.1 billion.
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