Turkey to help KSE firms raise funds

KARACHI: The Turkey’s exchange firm has agreed to facilitate the companies listed in Pakistan’s capital market to explore fund raising opportunities in its country, a statement said on Monday – as a follow-up to two-year long joint deliberations.
Under a memorandum of understanding, Borsa Istanbul – the securities, gold and derivatives exchange entity – will sell the data of the Karachi Stock Exchange (KSE) in the western Asian country through Eurasia Data Dissemination Network, said the statement issued by the KSE.
The agreement was signed between Borsa Istanbul Anonim Sirketinin (BIST) and the KSE during a four-day visit of a Turkish delegation to Pakistan to tap the possibilities of cooperation in data vending, dual-listing, private equity to public market transition and strategic partnership. In December 2013, BIST and KSE had signed an agreement under which a joint technical committee was constituted to discuss cross listings, data dissemination, debt securities, derivative and small and medium enterprise markets.
“The Turkish delegation was of the view that Pakistan’s listed companies, due to higher dividend yield than their Turkish counterparts, could easily raise funds at BIST,” it said. “Pakistani companies could collaborate with the companies listed on BIST in various sectors, like energy, food, IT, etc. and jointly raise funds at BIST.”
According to the delegation, Pakistani companies can avail opportunities of share price appreciation once they are listed on BIST. “Pakistani companies, exporting products to various regions, could increase their footprint by listing on BIST,” it said.
The statement said the KSE and BIST agreed to organise a joint road show in Istanbul in the last quarter of this year for Pakistani companies and brokerage houses. “This will ensure strong bilateral relationship and strengthen economic relationship between Pakistan and Turkey,” it added.
Turkey is the world’s 17th largest economy with more than $820 billion of gross domestic product. Borsa Istanbul has over 420 listed companies with equity market capitalisation in excess of $260 billion and average daily value traded of $1.6 billion in the spot equity market, $14.9 billion in debt market, and $2.1 billion in the futures and options market. In 2013, BIST firms had raised more than $1.7 billion in equity initial public offerings and $21.5 billion in debt securities.
The delegation members included Mustafa Kemal Yilmaz, executive vice president at BIST, Adnan Serhat Gorgun, Harun Ozay and Abdullah Cevdet Bayhan. They met with the officials of the Securities and Exchange Commission of Pakistan, Board of Investment, KSE’s board of directors, brokerage houses and leading securities firms.
The delegation termed the visit as an important step towards the collaboration between BIST and KSE, which will, in turn, boost financial and economic activities in Turkey and Pakistan.