KARACHI: Mughal Energy, a subsidiary of Mughal Iron and Steel Industries, is set to offer 10% of its shares to new investors as part of its strategy to raise capital and list on the Growth Enterprise Market (GEM) Board at the Pakistan Stock Exchange (PSX).
In a notification to the PSX, Mughal Iron and Steel Industries announced that Mughal Energy has applied for listing on the GEM Board through PRIDE. This move involves offering 10% of its post-paid-up capital to accredited investors, following Chapter 5A of PSX Regulation.
The GEM Board, a platform tailored for small companies and tech startups, welcomes accredited investors with a net worth of Rs5 million or more to trade shares. This board targets growth companies, although their higher risk profile leads to relatively lower trade turnover.
Mughal Energy’s parent company had previously completed the acquisition of Mughal Energy Limited (MEL) in late November 2023, making it a wholly-owned subsidiary. This strategic acquisition is expected to bolster the company’s competitive edge.
MEL has already secured land and a hybrid power plant, with contracts awarded for civil work and installation. Construction has commenced, and the plant is slated to be operational within 18 months.
The move to list on the GEM Board signifies a growing trend, with Mughal Energy becoming the fourth entity to join the Board, alongside sectors like technology, transport, and paper and board.
While geopolitical and economic challenges had delayed GEM Board listings in the past, stability in the domestic economy has reignited interest. The PSX’s recent performance, reaching an all-time high on the KSE 100-Index, reflects a rapid recovery and renewed investor confidence.
Additionally, the PSX’s main board welcomed a new company listing during Ramazan, marking the first listing of 2024 and ending a seven-month hiatus in domestic bourse listings.
Story by Salman Siddiqui
