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Tuesday July 16, 2024

PSX celebrates listing of Mughal Energy on GEM Board

By Our Correspondent
June 14, 2024
A stock broker looks at a computer during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 31, 2023. — AFP
A stock broker looks at a computer during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 31, 2023. — AFP

KARACHI: The Pakistan Stock Exchange (PSX) hosted a gong ceremony to celebrate the listing of Mughal Energy Limited (MEL) on its Growth Enterprise Market (GEM) Board on Thursday.

This marks the fourth listing on the GEM Board since its inception in 2020. The GEM Board aims to facilitate the capital raising needs and listing of small, medium, or greenfield businesses.

The ceremony was attended by Executive Director of Mughal Energy Limited Jamshed Iqbal along with other senior members. CEO of LSE Capital Limited Aftab Ahmad Chaudhry and the company’s senior management were also present. MD & CEO of the PSX Farrukh H Khan and other senior PSX officials also joined the ceremony.

A congratulatory video message from Chairperson of the Securities and Exchange Commission of Pakistan (SECP) Akif Saeed was also played.Mughal Energy Limited, a wholly owned subsidiary of Mughal Iron & Steel Industries Limited, deals in electricity and power generation. MEL is setting up a 36.5MW hybrid power plant to ensure an uninterrupted power supply to Mughal Iron & Steel Industries.

Currently, MEL is a greenfield project with no active business operations.The issue comprised an initial offering of 19,411,000 ordinary shares, representing 10 per cent of the post-issue paid-up capital.

The shares were offered at a fixed price of Rs16.74 per share, including a premium of Rs6.74. The total amount raised was Rs324,940,140.The primary objective of the issue was to raise capital for repaying sponsors’ loans, meeting the company’s working capital needs, and preparing for a future listing on the PSX’s Main Board.

The subscription took place on June 3 and 4, 2024, and the offering was oversubscribed by 1.7 times, with 55 successful applications.During his address, Farrukh Khan welcomed Mughal Energy Limited and said , “The successful initial offering and listing of Mughal Energy Limited on the GEM Board is a significant achievement, demonstrating the board’s efficiency as a capital-raising platform for growth enterprises and greenfield projects. The PSX is committed to supporting eligible companies through a streamlined and digitised listing process via the PRIDE portal.”

CEO of Mughal Energy Limited Khurram Javaid expressed his enthusiasm and said, “Joining the GEM Board of the PSX is a monumental milestone for us. It enhances our visibility and credibility, providing a strong foundation to achieve our strategic goals.”

CEO of LSE Capital Limited Aftab Ahmad Chaudhry highlighted the significance of the listing by adding , “This marks a crucial moment for the PSX and Mughal Energy, reflecting the robust growth potential of our capital markets and the trust esteemed companies place in the GEM Board. We are dedicated to expanding the IPO market and increasing the number of listed companies on the PSX.”