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SECP Overhauls IPO Book Building, Replacing Book Runners With Eligible Participants

The PSXNCCPL platform now enables direct bidding by more intermediaries with an option to keep bids undisclosed.

Overview

  • SECP approved Joint Procedures that finalize amendments to the Public Offering Regulations, 2017, putting a new operational framework for IPO book building in place.
  • The reform replaces the Book Runner model with Eligible Participants drawn from securities brokers, scheduled banks, development finance institutions and mutual funds.
  • Eligible Participants can submit bids directly for their own accounts or on behalf of clients within the upgraded system.
  • Investors can opt for disclosed or undisclosed bids to control visibility and protect confidentiality during price discovery.
  • PSX and NCCPL jointly developed an integrated platform connected to NCCPL for margin collection, settlement and refunds, with interfaces for broker onboarding and client registration by Consultants to the Issue.