30
Pakistan's main bourse is to sell a 40 per cent stake next week, a company official said Friday, citing Chinese and British consortia as among the prospective buyers.
At least 17 entities have expressed an interest in the Pakistan Stock Exchange (PSX), whose benchmark stock index was one of the best performing indices worldwide in 2016, gaining 38pc so far.
The PSX is currently owned by more than 300 Pakistani brokers.
“We are opening bidding for the 40pc share of the PSX on December 15,” Shahzad Chamdia, chief of a PSX divestment committee, told AFP.
Analysts estimate the deal will be worth around $225 million, but the committee declined to comment.
“We have the reference share price being evaluated by a third party and will reveal it only on the bidding day,” Chamdia said.
Sources at the PSX said a consortium consisting of the Shanghai Stock Exchange, the Shenzen Stock Exchange and a Chinese fund is bidding, as well as another consortium of UK financial institutions led by NASDAQ Technology.
Chamdia did not reveal the names of either consortia but confirmed that Chinese and British stock companies were in the running.
Other bidders include Pakistani banks and financial institutions, but their chances of winning are thought to be unlikely.
Following the sale, the company plans to offer 20pc of its shares to the public, Chamdia said.
Under its stock exchange reforms, Pakistan merged its three stock exchanges -- the Karachi Stock Exchange, the Lahore Stock Exchange and the Islamabad Stock Exchange -- to form the PSX in January this year.
The benchmark KSE index of 100 shares was at its highest ever level of 45319 points on Friday, compared with 32816 points on January 1.
Read more
On DawnNews
Comments (30) Closed
Dec 09, 2016 07:59pm
Markets will be more easily manipulated by foreign interests. A 40 percent stake should at the very least garner a higher value than a couple of hundred million. Short sighted greed.
Recommend
0
Dec 09, 2016 08:13pm
Just $225 mn for 40% stake?
Recommend
0
Dec 09, 2016 08:37pm
This is simply ridiculous initiative geared to make an independent, an utterly dependent entity just for imaginary numbers of no sure benefit, except to the few ruling manipulators.
Recommend
0
Dec 09, 2016 09:11pm
Nawaz Sharif is trying to make money where ever he can PIA, Steel Mills, Sugar Mills, Banks and now stock exchange. He knows that this is his golden opportunity because he may not be a prime minister again so he is cashing out on everything he can and will take his wealth outside of Pakistan as him and his family has done in the past.
Recommend
0
Dec 09, 2016 09:43pm
Risk and reward go and hand-in-hand.
Pakistani market may have done well recently, or in previous years. But I also know a lot of people who lost their entire life savings or chunk of their investment when the market had crashed a few times before. Just as Dow Jones, FTSE or BSE have fluctuated rapidly over the years. So enjoy the boom while you can. Every record high follows a crushing correction.
Dow is making new highs again this year, and has passed 19000 mark, and close to 20,000 which it will reach by Dec. 31. Expect a crash of 5-10% next year. That translates into Trillions and a few buttons on your shirts!
Recommend
0
Dec 09, 2016 09:41pm
Again Chinese closing in to buy an asset cheap. NSE of India is also going public with $7Bn valuation.
To sell premier stock exchange 40% at 225 million dollar or about 550 MN dollar is like selling family silver too cheap.
China has threatened to wreak havoc in US market by selling billion of dollars of Debt paper it holds if USA involves itself in South China Sea to implement ICJ order.
Recommend
0
Dec 09, 2016 09:42pm
@Rahul $225 million or Rs 225 million, makes no difference. The money will never reach Pakistan's State Bank.
Recommend
0
Dec 09, 2016 10:06pm
@Rahul Yeah because all billions of $$$ are in the pockets of few families in Pak. Pakistan is not poor in having resources of all kinds, they are just mismanaged at a mega scale. Same stuff is going on in India, not a whole lot different. 600 million don't have place to defecate and clean water to drink. You can think differ to feel good, but reality is the same in our Indopak house. Be well brother.
Recommend
0
Dec 09, 2016 10:10pm
British Pakistani and Chinese buy ins is worrisome.
Recommend
0
Dec 09, 2016 10:28pm
@Rahul Actually it is inflated price,the whole PSC is worth 376 million rupee only
Recommend
0
Dec 09, 2016 10:26pm
Stock Exchange to go to Foreign Hand !! God bless Pakistan
Recommend
0
Dec 09, 2016 11:19pm
Assets will usually benefit from cash injection and ultimately benefit the nation that is a given however I feel with China looking to buy a substantial stake things will certainly be different.
Recommend
0
Dec 09, 2016 11:20pm
Pakistan merged its three stock exchanges -- the Karachi Stock Exchange, the Lahore Stock Exchange and the Islamabad Stock Exchange -- to form the PSX in January this year. The combined value of 40% stake of this consortium in only $225. I understand the pressure coming from the lenders to sell it. Chinese are going to get it. No one else is interested into it. And try to compete with India...
Recommend
0
Dec 09, 2016 11:24pm
$225 million? Is this a joke? So all of Pakistani stock exchange is only worth $450 million?
Recommend
0
Dec 09, 2016 11:45pm
We need Imran khan in 2018 so bad. Nawaz Sharif is corrupted.
Recommend
0
Dec 09, 2016 11:50pm
Please,let it stay in Pakistani's hand.
Recommend
0
Dec 09, 2016 11:53pm
300 brokers are the owners of PSX - no wonder it has risen so high.
Development is about transparent market so that everyone can participate otherwise it's business for a limited few.
Where are the supporting reforms as well as their implementation. Does Pakistan wants to go Eastern European route where in some countries you can take your company public simply on a business plan and zero revenue.
Recommend
0
Dec 10, 2016 12:04am
Don't tell me that even this will be owned by Chinese now.With 40% stake on sale and 20% to public what will be left will not be a majority stake for sure.
Recommend
0
Dec 10, 2016 12:16am
What are policy makers thinking???? By selling its 40% stakes of share market, in future maybe after 2030 when pak economy will be in billions it will become a puppet in hands of foreign power who will surely arm twist pak to tow their line
Recommend
0
Dec 10, 2016 01:03am
@RIZ
Karachi stock exchange is a privately owned. Not by government of Pakistan.
Recommend
0
Dec 10, 2016 01:42am
Good news, as the Pak economy is picking up, all these who are commenting negatively have no idea about financial markets.
Recommend
0
Dec 10, 2016 01:43am
Penuts, is that all its worth.
It must be worth 10 times the value quoted
Recommend
0
Dec 10, 2016 02:08am
Dawn should have some kind of analysis further more than just news on this....Is this a good news or bad news...what are the pros and cons of this...what about the long term implications of foreign intervention in markets ?
Recommend
0
Dec 10, 2016 05:06am
Some of the entities mentioned are listed entities. Mr. Chamdia and Dawn just disclosed non-public information about a potential acquisition bid. Will the SEC investigate?
Recommend
0
Dec 10, 2016 07:28am
Bad deal.Bad thinking.
No need to sell National Pride things.
If some entity is performing well whats the need to sell it??
Recommend
0
Dec 10, 2016 10:20am
There is high probability they will sell it to Shanghai stock exchange .."The PSX is currently owned by more than 300 Pakistani brokers". Why is there a need to sell to foreigners?
Recommend
0
Dec 10, 2016 11:18am
@RIZ , Good going, What Nawaz has to do with the sale? The PSX is private entity which is owned by a over 300 stock brokers.
PSX generate its revenue by each transaction which is very nominal. People commenting on the price tag of $250. Millions without knowing the actual earnings and net profit.
Recommend
0
Dec 10, 2016 11:24am
@Skeptic ,This is the nature of stock market all over the World.
Lot of people loose and gain money on paper. This business is not for "uneducated" people. If you set up a loss ceiling you will never loose every thing.
Recommend
0
Dec 10, 2016 11:33am
@chander ,Oh what a precise number! Since our Indian brother knows so much of the Pakistani stocks, How about giving us some guidance on which stocks to buy and sell.And by the way where were you when the Mumbai market crashed Two times in the last few yesrs ?
Recommend
0
Dec 11, 2016 07:15pm
Neither the seller, nor the buyers are fool,but PSX could fetch much more if it is sold after the completion of CPEC.It is also unclear if the Security and Exchange Commission of Pakistan has given its permission to go ahead.According to reports Mr Ishaq Dar is behind this idea.
Recommend
0
