PSX Announces Listing of Adamjee Life Assurance Company

Pakistan Stock Exchange (PSX) announced on Monday the listing of Adamjee Life Assurance Company Limited (ALACL). In this connection, a Gong Ceremony was held at the Trading Hall of the Exchange. Chairperson PSX, Dr. Shamshad Akhtar, CEO NCL, Najam Ali, CEO ALACL, Umer Mansha, and senior management of all the stakeholders concerned attended the ceremony. ALACL was recently listed. This was the seventh equity listing on the Main Board of PSX and another step forward for the capital market of Pakistan in the fiscal year 2021-22. The listing follows the Offer of 25,000,000 ordinary shares of par value Rs. 10/-, i.e. 10 percent of the total post-IPO paid-up capital of the Company, through the book-building process. The entire Offer of 25,000,000 shares was offered through the book-building process at a floor price of Rs. 28/- per share. Initially, 75 percent of the Offer size was allotted to the successful bidders and 25 percent of the Offer was offered to retail investors. The book-building phase of the Offer attracted a significant response from investors with the Offer being oversubscribed by 1.04x by value and 1.03x by volume or number of shares. The strike price is Rs. 28/- per share. 81 investors took part in the book building, of which 53 investors became successful participants. Applications for a total of  1,453,500 ordinary shares against the Offer size of 6,250,000 ordinary shares were received in the general public portion of the Offer. The EIPO system of PSX also attracted a good response from investors as a total of 154 applications for 150,000 shares were filed through the EIPO system. The principal purpose of the Offer for Sale of shares of Adamjee Life Assurance Company Limited was to enable the holding company to realise a gain on its investment in ALACL, broaden the shareholder base of ALACL by bringing in public shareholders, HNWIs, and FIs, which will aid in increasing ALACL’s transparency and enhance good governance measures. Managing Director PSX, Farrukh Khan, stated, He further said, “Adamjee Life is backed by a top Pakistani business house, Nishat Group. I am also very happy to welcome Mian Mansha, Chairman and founder of Nishat Group, to PSX. The Group has a number of listed companies in many of the key sectors of the economy. The Group is truly an engine of growth for Pakistan’s economy, with a large and loyal investor base. I hope other business groups and entrepreneurs will follow Mian Sbs lead and leverage the capital markets for the growth of their businesses. It is no longer possible or sustainable to rely solely on the banking sector”. On successful closing of IPO of Adamjee Life, Chairman Nishat Group, Mian Muhammad Mansha, expressed his gratitude to the investors for their confidence by subscribing to the Offer. He also appreciated the trust of the policyholders and the efforts of management and employees in making Adamjee Life the 3rd largest life insurance company in the private sector and making it a profitable entity within a short span of time. Mansha added, “Considering the low penetration of life insurance together with high penetration of cellular density in Pakistan, there is a huge potential of growth and untapped market for insurers to explore by introducing new channels and products”. In his remarks, CEO Next Capital Limited (NCL), Najam Ali, said,