e-IPO system gaining attraction

ISLAMABAD: The implementation of e-IPO system has provided an efficient, easy and hassle-free mechanism to investors of capital markets for subscribing to initial public offerings (IPOs), a statement said on Friday.

The centralised e-IPO system allows investors to submit applications electronically without going to banks and waiting in long queues, it added.

The system has received an overwhelming response from equity investors.

During the last six IPOs, subscription through e-IPO increased from 0.2 percent to 14.6 percent. Similarly, in the case of latest issue of the term finance certifcate (TFC) by Bank Alfalah, 54 percent of the total applications were made through e-IPO, the statement said.

Investors having a valid computerised national identity card (CNIC), a bank account and a Central Depository Company (CDC) account can electronically register themselves “24/7 throughout the year” on www.cdceipo.com.

The registered investors can make application for the subscription of securities through any of the banking channels (ATM, net banking, mobile app or over the counter), it added.

The coordination between the Central Depository Company (CDC), 1Link (Guarantee) Limited, the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan made the implementation of this system possible, it added.

The Securities and Exchange Commission of Pakistan has also been aggressively leading the awareness campaigns to promote the e-IPO concept for increasing

the outreach for IPOs, promoting electronic form of securities instead of physical securities and making the entire IPO process more user-friendly and efficient, it said.