ISLAMABAD – Pakistan Economy Watch (PEW) has asked the government to introduce initial public offerings (IPO) grading system in Pakistan to restore confidence of investors and boost sluggish market.
A grade is not a recommendation to buy shares but only an independent, reliable and logical evaluation of the fundamentals of a company going in for an IPO, President PEW, Dr Mughal noted. “It also covers situation of the economy, business environment for the company and risk factors which helps investors to make an independent judgement,” he observed. Dr Murtaza Mughal said that Securities and Exchange Commission of Pakistan, can initiate steps making grading obligatory for all the companies interested in getting approval for an IPO.
Such steps will restore confidence of the small investors in the stock market and will give a boost to the economy, he maintained.