Pak-Qatar Family Takaful projects strong growth
SET TO REACH RS23 PER SHARE BY 2026
By Commerce Reporter
Karachi: Pak-Qatar Family Takaful Limited (PQFTL) is projected to see its share price reach Rs23 by December 2026, highlighting strong growth prospects in Pakistan’s burgeoning takaful sector. Ismail Iqbal Securities Pvt Ltd has issued a ‘BUY’ recommendation on the company’s upcoming Initial Public Offering (IPO), advising investors to subscribe up to Rs17.75 per share.
The brokerage firm anticipates that PQFTL’s profit after tax (PAT) will grow at a compound annual growth rate (CAGR) of 22% over the next six years, beginning in CY24. This growth is expected to be driven by the company’s cost efficiencies and an expansion in its direct sales channels.
Over the past three years, PQFTL has demonstrated steady growth in net income and PAT, bolstered by the success of its single-contribution products, which drive rapid asset accumulation. The company has also maintained one of the lowest acquisition costs in the industry, reported at just 5% for FY24.
In a major milestone, PQFTL became the first takaful operator in Pakistan to receive a Voluntary Pension Scheme (VPS) license in 2022, further enhancing its long-term growth prospects.
The IPO will issue 50 million shares, representing 21.67% of the post-IPO capital, with a floor price set at Rs14 per share. Arif Habib Limited has been appointed as the Lead Manager for the offering. The shares will be allocated via the Dutch auction method, with 75% of the shares going to successful bidders and 25% reserved for retail investors. Any unsubscribed retail shares will be redistributed among the other bidders.
Proceeds from the IPO will be primarily directed toward the company’s digital expansion. Approximately 30% of the funds will be used for hiring new sales and digital staff, while 24% will go toward technology upgrades, including the development of an in-house banca system and enhancements to the company’s partner portal.
Looking ahead, PQFTL aims to meet the Securities and Exchange Commission of Pakistan (SECP)’s minimum paid-up capital requirements, targeting Rs2,200 million by 2028 and Rs3,000 million by 2030.
Founded in 2006, PQFTL is Pakistan’s first and largest dedicated Family Takaful operator, with a 44% share of the overall family takaful market and an impressive 90.47% share in the dedicated segment. The company has also pioneered Islamic insurance innovation through products like the ‘Mahana Bachat Takaful Plan’ and boasts a strong nationwide distribution network.
However, potential risks include cash flow pressures, lower investment income, increased claims, regulatory changes, and rising reinsurance costs or counterparty failures, which could impact future performance.
Despite these risks, PQFTL’s solid market position and innovative products, combined with its focus on digital expansion, position the company for sustained growth in the years ahead.
