IPO regime made simpler, more efficient.

ISLAMABAD -- The Securities and Exchange Commission of Pakistan (SECP) has revamped initial public offering (IPO) regime to make the IPO process simple, cost-effective and more efficient.

The amendments to IPO Regulations 2017 have been made after thorough consultation with market participants with an objective to promote capital formation by facilitating issuers and safeguarding the interest of general public by enhancing disclosures.

Under the new regulations, the eligibility criteria for listing of companies have been simplified to promote capital formation through securities market. Moreover, the issuers that have a track-record of less than three years and were not making profit from last two years are allowed to raise capital from the securities market.

However, such issuers are required to submit a business plan and provide enhanced risk disclosures in the offering document for prospective investors.

The amendments have been made with the target to provide ease and reducing cost of IPOs, the requirement of submitting audited accounts has been reduced from 5 to 2 years.

Besides the time-frame relating to submission of progress report by the issuer has been increased from quarterly to half yearly basis.

A senior official of the SECP said that to safeguard the interest of the general public, certain parameters for greenfield projects (GFPs) have been introduced such as to ensure...