Electronic Initial Public Offering System (e-IPO)

An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded.

The Securities and Exchange Commission of Pakistan (SECP) intends to facilitate the public by providing efficient, easy and hassle free mechanism for submitting applications for subscription of securities of companies offered for sale through Initial Public Offerings (IPOs). For this purpose, the Central Depository Company of Pakistan (CDC) has developed an e-IPO System through which applications for subscription of securities of companies offered through IPOs can be submitted electronically through the internet.

Objectives of the e-IPO system

The main objectives of e-IPO system is to achieve the following:

  • Increase investor participation in IPOs with the help of technology.
  • Promote the culture of keeping securities in book entry form, thus avoiding the inefficiencies related to paper based securities.
  • Make the IPO process more user friendly and efficient.