SECP Approves New Direct Book Building for IPOs

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has greenlit the Joint Procedures for a revolutionary Book Building Mechanism, finalizing amendments to the Public Offering Regulations, 2017, and forging the operational backbone for IPOs.

The overhaul targets transparent price discovery, investor trust, and market depth, supercharging Pakistan’s capital markets.

Ditching the outdated Book Runner, the PSX and NCCPL unveil Eligible Participants (EPs)—brokers, banks, DFIs, mutual funds—now direct bidders in the book building arena, solo or for clients. Investors choose disclosed or undisclosed bids for privacy.

The system democratizes access, turbocharges efficiency, and ignites competition, seamlessly linking PSX’s book building with NCCPL’s margin collection, settlement, refunds—all on existing tech.