Revised Processing Timelines for IPOs and Listing of Securities

# Securities and Exchange Commission of Pakistan
## Securities Market Division

No. SMD/CIW/Misc./09/2015                                      Islamabad, November 8, 2023

Circular No. **16** of 2023

## Adoption of revised timelines for approval of IPO application and listing of Securities.

To simplify and streamline the Initial Public Offering (IPO) and listing process, the Securities and Exchange Commission of Pakistan (SECP) has reduced the overall IPO timelines in consultations with market participants and the securities exchange. The revised timelines will optimize the capital formation function of the securities exchange by enabling potential issuers to fulfil their capital raising needs in an efficient and timely manner.

For this purpose, the SECP in exercise of the powers conferred under section 172 of the Securities Act, 2015 hereby notifies the revised timelines attached as **Annexure-A** for immediate adoption by all stakeholders, including the Pakistan Stock Exchange Limited, Consultants to the Issue (CTI), Issuers, Book Runners and other market participants.

All stakeholders are advised to strictly adhere to the revised timelines in true letter and spirit.

Abdul Rehman Warraich  
Commissioner (SMD)

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## Annexure-A

### i. Fixed Price Method

| Steps Involved | Role of different parties | Timeline in working days |
|----------------|---------------------------|--------------------------|
| Submission of the IPO/ Prospectus application | CTI/Issuer to simultaneously submit IPO application signed by the CEO to the PSX and SECP through PRIDE. | 0 |
| Public Comments Period | On receipt of application, PSX to place prospectus on its website for seeking public comments. | |
| Regulatory Review Period | From the date of placement of prospectus on website for public comments, parallel review of SECP and PSX to evaluate the IPO application; and convey deficiencies/comments to CTI/Issuer for incorporation in the prospectus. | 5 working days |
| Response period | CTI/Issuer to address the public comments, deficiencies and observations of the Regulators and submit revised updated prospectus along with a **due diligence certificate** certifying that all issues have been addressed.<br>If some issues are not addressed, the CTI shall highlight list of those issues in the due-diligence certificate along with rationale for not addressing the same. | 5 working days |
| PSX approval | On receipt of due diligence certificate, PSX to convey its decision to the CTI, Issuer and SECP. | 2 working days |
| SECP approval | On receipt of PSX approval, SECP to convey its decision to the CTI, Issuer and the PSX. | 2 working days |
| **Total Approval Time (A)** | | **14 working days** |

### Post Approval timelines involving Fixed Price Method

| Steps Involved | Role of different parties | Timeline in working days |
|----------------|---------------------------|--------------------------|
| Dates for publication of Prospectus | CTI to apply and obtain dates from PSX for publication of prospectus. | 1 working day |
| Publication of Prospectus and placement on Website | i. CTI to publish the prospectus in one English and one Urdu newspaper.<br>ii. Placement of the prospectus on website of the Issuer, Securities Exchange and Consultant. | 1 working day |
| Public Subscription | As per Securities Act, prospectus has to be published in newspaper not less than seven days and not more than thirty days before the public subscription.<br>**Public subscription dates to be decided keeping in view requirements of the Securities Act, 2015.** | 7 working days |

ii. Book Building