Growth Enterprise Market (GEM) Board

What is GEM Board?

Growth Enterprise Market Board is a listing platform aimed at facilitating growth-oriented businesses, whether small, medium or greenfield businesses, to raise capital to fund their growth and expansion plans. GEM Board offers companies flexible listing requirements in recognition of the company’s growth phase.

Why choose GEM Board?

  • Listing on GEM Board involves reduced costs to raise capital with no initial SECP Fee and a minimized PSX initial listing fee capped at PKR 50,000.
  • The Exchange has been facilitating foreign investors since 1991. With the availability of foreign investors, listing on GEM Board can help attract investment from foreign investors.
  • Listing on GEM Board allows raising capital from a large base of accredited investors. No requirement for term sheet, exclusivity clause and signing Shareholders’ Agreement (SHA), as in a typical private fund raise.
  • The GEM Board has relaxed regulations compared to the Main Board.
  • Companies have an option to choose from a wide range of Consultants which include licensed Consultant-To-the-Issue, scheduled banks, brokerage houses, accounting firms and audit

Business Eligibility

Business Eligibility

PSX Listing Fees

  • Initial Listing Fees- a one-time fee payable at the time of the initial listing.
  • Annual Listing Fees- payable annually by a company calculated on the basis of company’s market capitalization
  • Additional Listing Fees- payable in the event a company chooses to raise additional capital once listed.
Initial Listing Fees 0.05% of the post issue paid-up Capital
Initial Listing Fees Cap PKR 50,000
Annual Listing Fees Issuer having Paid-Up Capital Amount of Fee
Up to PKR 50 million PKR 50,000
Above PKR 50 million & up to PKR. 100 million PKR 100,000
Above PKR 100 million PKR 200,000
Additional Listing Fees 0.05% of increase in paid-up capital
Additional Listing Fees Cap PKR 50,000

Procedure to List

  • Selecting the right Advisor is the most important step to get your company listed. The Advisor will assist you in your IPO journey.
  • It is advised to meet more than one Advisor to determine which ones have the appropriate experience and understanding of your business model. You should define a realistic timeline with your Advisor.
  • When signing a mandate with the Advisor, make sure to negotiate fees with them and clarify responsibilities in advance.
  • The Advisor completes an internal review and necessary due diligence of your company and prepares an Information Memorandum for your listing application.
  • The business plan is evaluated by the Advisor using different methodologies and its demand is gauged for the “Final Offer Structure” to get maximum value of the shares to be offered.
  • You will need to apply to PSX and SECP for approval. On behalf of the Exchange, the PSX Listing Committee allows approval of your listing application. Approval of SECP is not required to list on the GEM Board, making the listing process swift.
  • The Advisor will work with you to actively market your company to potential Accredited investors. They will assist your management team to prepare for a series of investor presentations as part of a formal roadshow.
  • An Initial Public Offering is held through a Public offer either by fixed price method or book building method.
  • Your company is formally listed on the Stock Exchange.
  • Exposure on the market can be very different from previous practice for most companies. For instance, publishing an annual report and disclosing material information to the market are two key continuing obligations for listed companies.
  • Selecting the right Advisor is the most important step to get your company listed. The Advisor will assist you in your IPO journey.
  • It is advised to meet more than one Advisor to determine which ones have the appropriate experience and understanding of your business model. You should define a realistic timeline with your Advisor.
  • When signing a mandate with the Advisor, make sure to negotiate fees with them and clarify responsibilities in advance.
  • The Advisor completes an internal review and necessary due diligence of your company and prepares an Information Memorandum for your listing application.
  • The business plan is evaluated by the Advisor using different methodologies and its demand is gauged for the “Final Offer Structure” to get maximum value of the shares to be offered.
  • You will need to apply to PSX and SECP for approval. On behalf of the Exchange, the PSX Listing Committee allows approval of your listing application. Approval of SECP is not required to list on the GEM Board, making the listing process swift.
  • The Advisor will work with you to actively market your company to potential Accredited investors. They will assist your management team to prepare for a series of investor presentations as part of a formal roadshow.
  • An Initial Public Offering is held through a Public offer either by fixed price method or book building method.
  • Your company is formally listed on the Stock Exchange.
  • Exposure on the market can be very different from previous practice for most companies. For instance, publishing an annual report and disclosing material information to the market are two key continuing obligations for listed companies.

Download Documents

GEM Supporting Partners

SMEDA

KARANDAAZ PAKISTAN is a not-for-profit, special-purpose vehicle set up under Section 42 in August 2014. Karandaaz is the implementation partner of the Enterprise and Asset Growth Programme (EAGR) and Sustainable Energy and Economic Development (SEED) program of the UK's Foreign, Commonwealth & Development Office (FCDO). Karandaaz promotes access to finance for micro, small, and medium-sized businesses through a double-bottom-line investment platform and financial inclusion for individuals by employing technology-enabled solutions.
Pakistan Stock Exchange (PSX) signed an Agreement with Karandaaz whereby Technical Assistance (TA) grants would be given to prospective companies to be listed on the GEM Board. Given that cost plays a significant role in the decision-making of the small enterprises to list and raise capital, this agreement sets the ball rolling for a grant to cover 50% of the consultant fee, which comprises a significant part of the total listing expense for 5 eligible growth enterprises. PSX has made the Grant Application form available on PRIDE for all interested companies to apply. For further details, Click here

PSEB

Pakistan Software Export Board (PSEB) is an apex association of the Federal Government of Pakistan under the Ministry of Information Technology. It strives to provide an enabling environment for the growth of Information Technology / Information Technology Enabled Service’s (IT/ITeS) exports and thus support the IT/ITeS industry.
PSEB aims to list Forty (40) IT/ITeS companies/firms registered with PSEB on PSX GEM Board to raise capital, to whom it will extend significant financial and technical assistance. For further details, Click here

SMEDA

SMEDA is an apex institution of Federal Government of Pakistan under the Ministry of Industries & Production. With an innovative and professional approach, it is striving to provide an enabling environment and business development services to SMEs. For further details,, Click here

We want to hear from you - Submit Interest

Whether you are just gathering information for a possible IPO in the future, or you are actually planning or preparing for an IPO, the Business Development team of PSX is here to offer assistance.

If you have already begun preparations for IPO but want to hear from the PSX directly, our team is here for you to consult with. We are ready to answer any questions regarding the listing of your company. If you want to know about our system and rules for listing such as listing criteria, or if you are curious to know what you should do to prepare for listing, please feel free to contact us through our website or by phone.

We also have staff available to visit prospective applicants and provide hands-on explanations of the listing process.

Karachi

Quratulain Ali


Email: Quratulain.ali@psx.com.pk

Telephone: +92-2135274582 Ext. 4582



Magna


Email: magna@psx.com.pk

Telephone: +92-2135274574 Ext. 4574

Lahore

Sarmad Hussain


Email: sarmad.hussain@psx.com.pk

Telephone: +9221-111-001122 Ext: 4653 | Direct: 042-36316974

Islamabad

Saqib Ali


Email: saqib.ali@psx.com.pk

Telephone: 111-001-122 Ext: 4637 | Direct: 021-35274673

Help Desk (92-21) 111-011-122

Email: listing@psx.com.pk