PQFTL IPO soars on day one, oversubscribed amid strong investor demand

By Commerce Reporter

KARACHI: The Initial Public Offering (IPO) of Pak-Qatar Family Takaful Limited (PQFTL) has gotten off to an impressive start, with the offering being oversubscribed on its very first day of book building. This strong response underscores investor confidence in the company’s future growth prospects.

Shahid Ali Habib, CEO of Arif Habib Limited, confirmed that a significant amount of funds have already been deposited, with expectations that more bids will be placed on the final day of the offer, which concludes tomorrow.

The PQFTL IPO consists of 50 million shares, representing 21.67% of the company’s post-IPO capital, and is priced at a floor rate of Rs14 per share. The allocation will be divided with 75% going to successful institutional bidders and 25% reserved for retail investors, using the Dutch auction method for pro-rata allocation.

Founded in 2006, PQFTL is Pakistan’s first and largest dedicated Family Takaful operator, commanding a dominant 44% share of the overall family takaful market and an impressive 90.47% share in the dedicated takaful segment. The company has consistently demonstrated robust growth in net income and profit after tax (PAT), largely driven by its single-contribution products, which help accelerate asset accumulation while maintaining low acquisition costs of just 5% in FY24.

PQFTL’s growth trajectory received a further boost in 2022 when it became the first takaful operator in Pakistan to secure a Voluntary Pension Scheme (VPS) license, marking a significant step toward diversifying its long-term offerings and strengthening its market position.

With strong investor interest and promising fundamentals, PQFTL’s IPO is set to be a key milestone in Pakistan’s growing financial sector.