MAJOR LEGAL REQUIRMENT APPLICABLE TO IPO AND LISTING:1. Applicationfor listing to the stock exchange:A issuer that meansto list any of its security on a stock trade might make an application to suchstock trade under section 9 of the securities and exchange ordinance in1969. The application under section 9might be made on the arrangement given at Annexure-I and should be joined bysuch documents and information as mention in it. Any security offered areissued to the general public as there needs to be listed on the stock exchange.2. Issueof shares by a company or a body corporate through ipo.An organizationmay raise its funds for meeting its financial needs for issue of its securitiesfor ex shares bonds and so on to different classes of financial specialistsincluding the overall general public.
At whatever point an organization choosesto raise subsidize from the general public , it is required to under section 57of the company ordinance 1984 the ordinance of issue circulate and to publishand after approval of SECP prospectus. A documents invites to the general publicfor membership of securities of an organization.3.
Sale ofshare to public by an existing share holder:A person who holdmore than 10% of shares in the organization or a body corporate may offer forsuch shares in totality to a general public through an offer for sale discount.4. Eligibility for listing:Any public listedorganization or body corporate having at least paid up capital of two hundred million for Appling on listed onthe stock exchange in Pakistan.Seciation 2 of theorganization private limited organization invite the general public membershipof their securities including shares 5.
Issue size and allocating of capital:Keeping in theview the minimum bench mark RS200 million paid up capital · The organization looking for listing.· In the case of issue of paid up capital forissuing of an organization is depend upon the RS 500 million at least 25% of such capital should be offered to the generalpublic.· In case of the capital issuing of theorganization in RS 500 million in the public offers shall be at least 125million or 12.5% of the post issuing of paid up capital. Whichever is higher. Such organization might, be thatas it may, upgrade the quantum of open shareholding to 25% inside four years ofits posting. Steps in the IPO process:There areseveral steps which are discussed in the the ipo process.· Planningfor IPO process· Choosingunderwriters · Filinga prospectus · IPOpromotion · Finaloffering price and amount · Sellingon the stock market· Initialpublic offering Allocation· Initialpublic offering Analysis · Initialpublic offering filing · Initialpublic offering stocks