Pak-Qatar General Takaful (PQGTL) announced yesterday that it would launch its Initial Public Offering (IPO) next week to raise up to PKR420m ($1.5m).
The Securities and Exchange Commission of Pakistan (SECP) last week approved the prospectus for the IPO.
PQGTL will be the first dedicated General Takaful company to be listed on the Pakistan Stock Exchange (PSX).
PQGTL is offering 30m ordinary shares, representing 29.67% of the company’s total post-IPO paid-up capital. The IPO is being effected through the book building method, with 75% of the IPO shares being allocated to the book building portion and the remaining 25% offered to retail investors.
The 30m ordinary shares will be offered at a floor price of PKR10 per share with a ceiling price of PKR14 per share.
The book-building process is scheduled for 21-22 January, with investor registration opening on 16 January. The general public subscription is scheduled for 28-29 January.
Use of IPO proceeds
PQGTL, giving the rationale for the IPO, said that it aims to reinforce its capital base, improve solvency margins, and expand its digital distribution network while continuing to develop innovative, customer-centric, and cost-effective takaful products. The IPO proceeds will be allocated to the following purposes:
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Strengthening solvency & underwriting
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Improving digital infrastructure and online distribution network
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Upgrading digital portals & applications
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Branch transformation
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Sales team expansion
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Digital marketing
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Sustainable growth in income
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Expanding investment base and strengthening the participants’ takaful fund.
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Compliance with minimum paid-up capital requirements
PQGTL currently maintains an issued and paid-up capital of PKR711.07m. The proceeds raised through this public offering will increase the company’s paid-up capital to PKR1.01bn, enabling PQGTL to meet progressive regulatory milestones for non-life insurers and takaful operators as outlined by the SECP. The phases are as follows:
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Prior to 31 December 2026 - PKR 500m
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By 31 December 2026 - PKR1bn
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By 31 December 2028 - PKR1.5bn
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By 31 December 2030 - PKR2bn
PQGTL’s current shareholders include Pak-Qatar Investment (Private) with a stake of 33.39%; Qatar Islamic Insurance Group, 12.44%; Qatar International Islamic Bank, 10.00%; and Sheikh Ali Bin Abdullah Al Thani, 13.45%.
PQGTL is one of two dedicated general takaful companies in Pakistan, having a market share of 19% of the dedicated general takaful sector. It operates through eight branches nationwide, covering all major commercial and urban centres, including Karachi, Lahore, Islamabad, Peshawar, Sialkot, Multan, Faisalabad, and Sukkur. The takaful operator is part of the broader Pak-Qatar Group, which also includes Pak-Qatar Family Takaful.