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Listing on Exchange Your Avenue for Progress

August 2018 Contents of the Presentation:

Section 1: Benefits Of Listing Section 2: Successfully Listed Section 3: Listing Requirements Section 4: Annual listing fee Section 5: Listing Procedure Section 6: De-Listing

2 Section 1 Benefits Of Listing

3 Why should you list on PSX?

. Growth and expansion needs . Invest or carry out merger & acquisition plans Raise Term Low-cost . Invest in new projects Capital . Enhance current capacity . Diversify business . Meets working capital requirements

• 20% on tax payable in the first year of listing • 20% on tax payable in the subsequent first tax Tax Credit year of listing • 10% on tax payable in the following two tax years respectively

Reduces long term liabilities by enabling: Balance Sheet Optimization • Payment of its long term loans • Reducing its dependence on debt Why should you list on PSX?

• IPOs add a level of prestige to a Company Enhances Company’s Public • IPOs can be used as a branding and marketing Profile tool as they attract media interest, attention and scrutiny

A listed company has to disclose and disseminate all material and price sensitive financial information Improved Relations with which adds to: Bankers and Suppliers • The business transparency • Improved relations with Bankers, lenders and clients

Listing bridges any discord that may arise during a Business Continuity and transition from the first generation to the next, by Succession Planning introducing • Corporate Governance Structures • Succession Planning

5 Why should you list on PSX?

Liquidity Listing brings in liquidity and ready marketability of the company’s securities

Pakistan is now part of the MSCI Index. Companies qualifying for the Index will: MSCI index • Be considered for investment by international tracking the MSCI EM Index • A level playing field with its international counterparts

Feasible and Effective Public listing creates a market for the Company’s Exit Strategy shares and sponsors can sell their shares in the

6 Section 2 Successfully Listed

7 Listing Success Stories

Company Performance 1. Limited 120000 Year of Listing: 2014 100000 80000 50 60000 41.12 40 37.53 40000

30.67 PKRMillions in 30 20000

PKR 20 16.55 0 9.39 10.07 10 5.97 7.06 Before Dec-14 Dec-15 Dec-16 Listing 0 Before Dec-14 Dec-15 Dec-16 Sales Net Profit Shareholder's Equity Listing Book Value Per share Earning Per Share

8 Listing Success Stories

2. Systems Limited Company Performance Year of listing: 2015 7000 6000 30 26.26 5000 24.64 25 22.55 4000

20 3000 PKRMillions in 15 2000 PKR 1000 10 4.92 4.09 4.64 0 5 Before Listing Dec-15 Dec-16 0 Before Listing Dec-15 Dec-16 Sales Net Profit Shareholder's Equity Book Value Per share Earning Per Share

9 Listing Success Stories

3. Mughal Iron and Steel Industries Limited Company Performance Year of listing: 2015 30000 25000 40 33.67 20000 35 31.13 15000 30 26.38 25 21.98 10000 20 PKRMillions in

PKR 5000 15 0 10 6.03 7.1 4.76 3.94 5 Before Jun-15 Jun-16 Jun-17 0 Listing Before Jun-15 Jun-16 Jun-17 Listing Sales Net Profit Shareholder's Equity Book Value Per share Earning Per Share

10 Listing Success Stories

4. Amreli Steels Limited Company Performance Year of listing: 2015 25000

20000 35 31.62 29.83 30 15000 25 10000

20 17.74 PKRMillions in

PKR 15 5000 10 4.54 4.31 0 5 3.62 Before Listing Jun-15 Jun-16 0 Before Listing Jun-16 Jun-17 Sales Net Profit Shareholder's Equity Book Value Per share Earning Per Share

11 Section 3 Listing Requirements

12 What is the Eligibility Criteria?

Main Board SME Board

• Minimum paid up • Minimum paid up capital of Rs.200 million capital of Rs.25 million

13 What are the mandatory requirements?

Financial Operational SME Website Statements Requirements

• Must prepare periodic • Must contain basic • Must be in business for at Financial statements business information least three years • Must audit statements by • Must contain prospectus • Must be profitable for at QCR rated chartered • Must post annual, half-year least two preceding years accountants quarterly accounts before getting listed • Must publish on the website

14 Section 4 Annual Listing Fee

15 What is the Listing Fees?

Initial Listing •One tenth of 1% of Paid Up Capital Fees •Capped at PKR 1.5 Million

Annual Listing •Annual Rate for FY 2018-19 •Annual Rate for FY 2019-20 Fees •Capped at PKR 3 Million

16 What is the Listing Fees?

Annual Listing Fees

FY 2018-19 FY 2019-20

Companies Having Market Rate Of Fee Per Annum Companies Having Market Rate Of Fee Per Annum Capitalization As On June 30 Capitalization As On June 30 Up to Rs.100 million Rs.100,000 Up to Rs.100 million Rs.100,000 Above Rs.100 million & up to Rs.250 million Rs.100,000+0.075% on excess over Rs.100 million Above Rs.100 million & up to Rs.250 million Rs.100,000+0.075% on excess over Rs.100 million Above Rs.250 million & up to Rs.500 million Rs.212,500+0.045% on excess over Rs.250 million Above Rs.250 million & up to Rs.500 million Rs.212,500+0.06% on excess over Rs.250 million Above Rs.500 million & up to Rs.1,000 million Rs.325,000+0.02% on excess over Rs.500 million Above Rs.500 million & up to Rs.1,000 million Rs.362,500+0.025% on excess over Rs.500 million Above Rs.1,000 million & up to Rs.2,000 million Rs.425,000+0.01% on Above Rs.1,000 million & up to Rs.2,000 million Rs.487,500+0.015% on excess over Rs.1,000 million

Above Rs.2,000 million & up to Rs.10,000 million Rs.525,000+0.0045% on excess over Rs.2,000 million Above Rs.2,000 million & up to Rs.10,000 million Rs.637,500+0.0065% on excess over Rs.2,000 million Above Rs.10,000 million & up to Rs.20,000 million Rs.885,000+0.001% on excess over Rs.10,000 million Above Rs.10,000 million & up to Rs.20,000 million Rs.1157,500+0.0025% on excess over Rs.10,000 million Above Rs.20,000 million & up to Rs.50,000 million Rs.985,000+0.0004% on excess over Rs.20,000 million Above Rs.20,000 million & up to Rs.50,000 million Rs.1407,500+0.00075% on excess over Rs.20,000 million Above Rs.50,000 million Rs.1,105,000+0.0003% on excess over Rs.50,000 million Above Rs.50,000 million Rs.1,632,000+0.0005% on excess over Rs.50,000 million

17 Section 5 Listing Procedure

18 How can you get your company listed on the Exchange?

• Your Company appoints a “Consultant” and completes submission Time Varies of all documents.

• Initial review of your Company and necessary due diligence to One Month ensure adequate disclosures in the prospectus ( Approx.)

• On behalf of the Exchange, the PSX Listing Committee allows Approval valid for approval of your listing application. Sixty days

One Month • SECP approves the prospectus. (Approx.)

• Public offer is held through fixed price or book building method Seven to ten days (Approx.)

• Your Company is formally listed on the Exchange Soon After Public Subscription

Procedure Timeline 19 Section 6 De-Listing

20 What will be your Exit Strategy?

Voluntary De-listing Involuntary De-listing Your company can be removed from You can delist your company through the listed companies list due to buy-back of shares at a price approved violation of PSX’s Listing of Companies by the Exchange & Securities Regulations

21 Contact Information

Raeda Latif General Manager Email: [email protected] Telephone: +92-2135274580 Ext: 4580 Help Desk (92-21) 111-011-122 Office Ext: 4580, 4582 Haris Saeed Office Ext: 4653 Office Ext: 4666 Business Development Manager Email: [email protected] Web: psx.com.pk Telephone: +92-2135274574 Ext: 4582 Email: [email protected]

Mariam Mehtab Marketing and Business Executive Email: [email protected] Telephone: +92-2135274572 Ext: 4572

22 Contact Information

Serving Investors & Industry Building, Stock Exchange Road, Karachi-74000, Pakistan. Tel: (+92)111-001-122, Website: www.psx.com.pk