Interloop IPO’s 43pc subscription made through CDC’s electronic system

KARACHI: Stock market investors now prefer to use electronic IPO platforms to subscribe for new IPOs. In recent Interloop IPO, 43 percent of total subscriptions (both physical and electronic), or around 80 percent of all electronic subscriptions were made through CDC’s Centralized eIPO System (CES), said a statement issued on Thursday.

Central Depository Company (CDC)’s Centralized eIPO System (CES) has become the premium choice of stock market investors as 2283 investors in the Interloop IPO subscribed through CDC’s Centralized eIPO System (CES).

Investors had the option of physically submitting the IPO applications at designated banks, using Electronic IPO portals of designated Banks or using Centralized eIPO System (CES) of CDC.

The CES is an online portal, available 24 hours a day from anywhere in the world and connected with all leading banks.

This was also the first time that CDC introduced the IPO facilitation Account, an additional facility through which investors can subscribe securities even if they do not have CDC Account at the time of IPO subscription.

The investors can later open their accounts and get their securities transferred in their respective accounts, till then securities will be in safe custody of CDC.

This facility was introduced with the objective of facilitating new investors and encouraging maximum participation of retail investors in the IPO.

Around 900 new investors participated in the Interloop IPO through this facility, which is a testament of the pilot phase’ success.

In its continuous resolve to increase convenience for stock market investment, Central Depository Company of Pakistan Limited is taking regular initiatives to provide ease and efficiency for the subscription of shares offered through IPOs to general public.

Commenting on this success, CEO-CDC Badiuddin Akber said, “This is an important step towards expanding the investor base in the Capital Market.

“We are hopeful that this facility will be utilized by a large number of new investors and will become a good tool for attracting new investors towards our market.”

He further said that “While it is important to note that both CES and IPO Facilitation Account are free-of-cost facilities for investors, this endeavor is part of CDC’s long time commitment towards the development of Pakistan Capital Market and our continuous efforts to introduce new technological solutions to enhance ease of doing business.

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