KARACHI: The Pakistan Stock Exchange Limited (PSX) has approved the sale of remaining 20 percent shares of PSX to general public through an initial public offering (IPO) while draft offer for the sale document has been issued for public comments. The draft offer for sale document is yet to be approved by the Securities and Exchange Commission of Pakistan (SECP). PSX requested to submit written comments on the draft offer for sale document by May 22, 2017. The PSX board decided that the shares would be offered to the general public during the last week of the next month, June 2017. The PSX board has decided that the floor price of these shares would be Rs 28 per share while the strike price would be determined after receiving of bids. The offer comprises 160,295,320 ordinary shares of face value of Rs 10/- each, which constitutes 20% of the total, paid up capital of the company. The entire issue of 160,295,320 ordinary shares will be offered through a book building process at a floor price of Rs 28/- per share. Initially, 75% of the issue size of 120,221,320 ordinary shares will be allotted to successful bidders and 25% of the issue of 40,074,000 ordinary shares will be offered to retail investors. Any unsubscribed portion of the general subscription portion will be allocated to successful bidders of the book building portion on a pro-rata basis. An order book of bids from bidders is maintained by the book runner, which is then used to determine the Strike Price through the “Dutch Auction Method”. Under the Dutch Auction Method, the strike Price is determined by lowering the bid price to the extent that the total number of shares offered through the book building process is subscribed. The persons shall be eligible for participating in the book building process are; a financial institution; a pension fund authorized under the Voluntary Pension System Rules, 2005; a fund established under the Collective Investment Scheme under the Non-Banking Companies, a company which has a history of investing in the securities market; a high net worth individual and a non-resident Pakistani individual holding Overseas ID Card. The PSX said that application for shares must be made for 500 shares or in multiples of 500 shares only. Applications which are neither for 500 shares nor for multiples of 500 shares shall be rejected. The minimum amount of application for subscription of 500 shares is the offer price x 500 shares. “If the shares offered to the general public are sufficient to accommodate all applications, all applications shall be accommodated. “If the shares applied for by the general public are in excess of the shares being offered to them, the distribution shall be made by computer balloting, in the presence of the representative(s) of PSX”.