KARACHI: The Pakistan Stock Exchange (PSX) sold 40 percent of its stakes to a Chinese consortium through bidding on Thursday at the rate of Rs 28 per share. The amount generated through the sale of these shares stands at Rs 9 billion, equivalent to $85.5 million. The Divestment Committee opened the bids in the presence of representatives of all qualified bidders. The bid submitted by the Chinese consortium at Rs 28 per share emerged as the highest and was acceptable under the relevant regulations. The Chinese consortium consists of three Chinese Exchanges – the China Financial Futures Exchange Company Limited (being the lead bidder), Shanghai Stock Exchange and Shenzhen Stock Exchange. The rest of the 10 percent shares have been acquired by two local financial institutions – Pak China Investment Company Limited and Habib Bank Limited. Apart from the strategic investors, other bidders who submitted bids for the 5 percent shares were National Bank and Habib Metropolitan, Chairman of the Divestment Committee Shahzad Chamdia told Daily Times. The other consortium of strategic investors Markhor Consortium consisted of Nasdaq, two UK-based funds and local financial institutions. The Divestment Committee will now issue the Letter of Acceptance to the above consortium, subject to formal approval of the Securities and Exchange Commission of Pakistan (SECP). According to analysts, the exchange is expected to offer another 20 percent to the general public via an IPO, which is likely to increase the value of the sale to $128 million. Arrival of Chinese investors is likely to bring in technological advancement, financial products, global visibility, etc. “The IPO is expected by the June next year, which will further strengthen the liquidity position at bourse,” said Amin Yousuf of AKY Securities. In the first phase, Stock Exchanges Corporatization, Demutualization and Integration program in January 2016, three local bourses Karachi Stock Exchange, Islamabad Stock Exchange and Lahore Stock Exchange were integrated into the Pakistan Stock Exchange. Pakistan Stock Exchange (PSX) sell-off would provide additional impetus not only in the form of improved Capital Adequacy but also improves foreign participation.