PSX, Gujranwala Chamber sign MoU

KARACAHI: Pakistan Stock Exchange (PSX) signed a memorandum of understanding (MoU) with the Gujranwala Chamber of Commerce and Industry (GCCI), for mutual cooperation and collaboration to facilitate access to equity financing for Small and Medium Enterprises (SMEs), a statement said on Tuesday.

Saeed Ahmed Taj, president of GCCI, and Mohammad Abdullah, head of special projects of PSX, signed the MoU, it added.  Pakistan Stock Exchange is finalising the launch of its Small and Medium Enterprises (SME) Board, a platform for the SMEs to raise equity capital to fund their growth and expansion needs.

A public company with post-issue paid-up capital of not less than Rs25 million and not more than Rs200 million is eligible to get listed on the SME Board, the statement said.

To promote the SME sector and to encourage SMEs to get listed on the SME Board, PSX has endeavoured to make the listing procedure simple and easy.  To reduce the listing cost, initial listing fees of the exchange has been capped at Rs50,000, it added.

Before the MoU was signed, an awareness session was held to promote the SME Board. On the basis of the MoU, PSX and GCCI would collaborate to generate awareness among the SMEs of the benefits of listing, which included the creation of a proper corporate structure within the SME for long-term business sustainability, improved branding, greater credibility with buyers and suppliers, and managing and growing family wealth in a manner that avoids conflict within families, it added.

PSX and GCCI would conduct joint awareness sessions, workshops and trainings for the SMEs to promote equity listings on the SME Board.  At the same time, the statement said, PSX has taken a number of steps to protect and safeguard investors. A capital lock-in period has been defined for sponsor’s shareholding, ie, the sponsors would have to retain their entire shareholding in the listed SME for one year and, for the next two years, they would have to retain at least 25 percent of the paid-up capital of the SME.