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ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it easier for established businesses to raise capital on the Pakistan Stock Exchange (PSX).
Businesses operating as partnerships, Limited Liability Partnerships (LLPs), and carved-out business divisions can now use their historical profitability record to qualify for an Initial Public Offering (IPO).
The facilitation has been provided through amendments to the Public Offering Regulations 2017. The reforms are aimed at reducing barriers to listing, promoting corporatisation, improving ease of doing business, and broadening access to capital markets.
Under the revised framework, eligible businesses can now rely on their historical profitable track record prior to incorporation as a company to satisfy the two-year profitability requirement for an IPO. This removes a major hurdle for established businesses seeking to access capital markets and raise growth capital.
