IPO of Qatar-backed insurer sees 3.2 times oversubscription

The latest listing on the Pakistan Stock Exchange oversubscribed by 3.2 times in an apparent indication of improved investors’ sentiment.

The IPO of Pak-Qatar Family Takaful Limited (PQFTL) on Friday was much anticipated as it was the first listing on the stock exchange in months.

Pak-Qatar Family Takaful Limited is Pakistan’s first and largest company dedicated exclusively to family takaful or Islamic insurance. It has a 44% market share of family takaful and a 90.47% market share of the dedicated family takaful segment, and 6.6% of total life insurance business share.

The company, backed by Qatar’s financial sector, also has strategic partnerships with 14 leading banks to offer protection solutions through bank branches and digital platforms.

The company’s strike price closed at PKR 18.02 per share, compared to the floor price of PKR 14. Total demand reached PKR 1.67 billion against the issue size of PKR 525 million, resulting in an equity raising of PKR 676 million.

Shahid Ali Habib, CEO of Arif Habib Ltd., the lead manager for the IPO, said the first-ever IPO in Pakistan’s Islamic insurance (Takaful) sector reflected strong market confidence in the company and its robust fundamentals.

Proceeds from the IPO will support the company in meeting capital requirements, expanding digital channels, and developing new customer-focused Takaful products.

Earlier, it was reported that Pak-Qatar Family Takaful Ltd will offer 50 million shares at up to PKR 21 per share through book building.

Out of the total 50 million shares, 37.5 million will be allotted through book building to institutional buyers, and the remaining 25% — 12.5 million — shares will be issued to the general public.

The listing follows a record-setting performance by Pakistan’s benchmark index, which recently hit all-time highs. Analysts say the rally is being driven by stabilizing inflation, increased political stability, and renewed foreign investor interest in emerging markets.