At least 10 Pakistani firms could seek listing on DFM

Dubai:At least 10 Pakistani companies may seek secondary listings on the Dubai Financial Market (DFM) after the Dubai bourse signed a memorandum of understanding with the Karachi Stock Exchange (KSE) to facilitate such activities.

The cooperation agreement will encourage listed companies in both stock markets to cross list their equities, officials said yesterday.

"This MoU signals the strengthening of ties between two of the region's premier bourses," DFM chairman Eisa Kazim said.

He said the agreement will provide opportunities for both the DFM and KSE to share best practices in technology, expertise and training.

"Further, it will benefit listed companies in both markets, along with individual and institutional investors," he said.

Important source

KSE managing director Adnan Afridi told Gulf News the emirate could become an important source of capital for Pakistani companies raising funds abroad.

"Dubai represents an important source of liquidity. Many of our companies can look at Dubai as a source of liquidity like they do at any other financial centre in the world. Whether that happens in the form of dual listings or in the form of GDRs [global depository receipts] is another matter," Afridi said. He said the two exchange will cooperate in standardising and harmonising regulations in different areas such as cross-listing of indices.

Asked how many KSE companies may be looking to list on the DFM, Afridi said: "I think at the moment there are at least 10 companies that are looking for additional capital."

Pakistani companies in which UAE investors have stakes are likely candidates for Dubai and Abu Dhabi listings, UAE-based Pakistan Business Council president Qaiser Anis said.

Several large firms from the banking and energy sectors were considering listing on the UAE bourses, according to reports last year.

KSE's accord with DFM follows a similar cooperation agreement signed with the Abu Dhabi Securities Market recently.