Pakistan’s first Takaful IPO draws strong demand from institutional and high-net-worth investors

High-net-worth individuals (HNWIs) accounted for the largest share of allocations in the IPO of Pak Qatar Family Takaful (PQFTL). The listing marks the first IPO of a dedicated Family Takaful company at the Pakistan Stock Exchange (PSX).

Of the 37.5 million shares allocated through the book-building process, HNWIs received 28.21 million shares, followed by trading right entitlement certificate holders with 4.6 million shares, insurance companies with 3.1 million shares and other institutions and corporates with 1.6 million shares, according to lead arranger, Arif Habib.

The category-wise distribution comes after the book-building exercise conducted on the 11th and 12th December 2025, which attracted total participation of PKR1.67 billion (US$5.97 million) against an issue size of PKR525 million (US$1.88 million), an oversubscription of about 3.2 times.

A total of 258 investors participated in the process, of which 140 were successful in securing allocations.

The strike price for the IPO was set at PKR18.02 per share (US$0.64). PQTFL was listed on the PSX earlier in December, following regulatory approvals and the completion of the offering process.

Separately, the PSX confirmed that Pak-Qatar General Takaful, PQTFL’s sister company, has submitted its draft prospectus for public consultation ahead of a proposed listing on the PSX main board.

The planned IPO comprises 30 million ordinary shares with a par value of PKR10 each (US$0.35), to be offered through the book-building method at a floor price of PKR10, with Arif Habib again acting as lead manager.

According to the Securities and Exchange Commission of Pakistan’s Insurance Industry Statistics 2024 report, Pakistan’s insurance market comprises eight life insurers and four Family Takaful operators, alongside 27 non-life insurers, two General Takaful operators and one reinsurer.