K-Electric's retail Sukuk listed on PSX after being oversubscribed 2.2 times
Innovative short-term Islamic bond attracts over 600 retail and institutional investors, raising PKR 2 billion for operational needs
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
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The Pakistan Stock Exchange (PSX) on Tuesday marked the successful listing of K-Electric’s retail short-term Sukuk, an Islamic financial instrument that received an overwhelming investor response and was oversubscribed 2.2 times.
The listing ceremony was attended by PSX Managing Director and CEO Farrukh H. Sabzwari, Central Depository Company (CDC) CEO Badiuddin Akber, National Clearing Company of Pakistan Limited (NCCPL) CEO Naveed Qazi, and K-Electric leadership including CEO Moonis Alvi, CFO Aamir Ghaziani, Company Secretary Rizwan Pesnani, KE board member Saad Amanullah Khan, and the company’s Shariah advisors.
“This innovative Sukuk instrument marks the beginning of a new chapter in broadening investor participation and deepening financial inclusion,” KE CFO Aamir Ghaziani said. “It has been designed to attract individual investors and strengthen Pakistan’s capital markets while promoting Islamic finance. The overwhelming response, particularly from individual investors, and the fact that the instrument is tradeable, are features that mark its success.”
KE CEO Moonis Alvi said the retail Sukuk demonstrated strong demand from all categories of investors. PSX chief Farrukh H. Sabzwari called the offering a “prime example of innovation” that contributes to the growth of capital markets under a supportive regulatory framework fostered by the Securities and Exchange Commission of Pakistan.
The Initial Public Offering (IPO) opened on August 4 for individual investors, including KE’s residential and commercial consumers, before being extended to all investors, including asset management companies, on August 18. The IPO concluded on September 3, drawing bids worth 2.2 times more than its PKR 2 billion target.
More than 600 retail and institutional investors participated, with proceeds raised to meet KE’s operational and working capital requirements. A pre-IPO phase of PKR 1 billion had been reserved for KE’s industrial and large commercial consumers, as well as high-net-worth individuals.
A unique feature of the Sukuk is the option for KE’s residential and commercial consumers to adjust monthly profits directly against their electricity bills. The Sukuk operates under a Shirkat-ul-Aqd Islamic structure, enabling investors to directly participate in K-Electric’s core electricity supply operations.
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