PSX GEM board's net worth barrier worries potential companies

May 31, 2023 (MLN): The Pakistan Stock Exchange (PSX) Growth Enterprise Market (GEM) board’s restriction over investors with net worth below Rs500 million is a significant concern for many potential companies, Jamal Nasir Khan, CEO of Supernet Ltd said during a webinar organized by Pakistan Software Export Board (PSEB) on Tuesday. 

Listing on GEM Board opens doors to substantial opportunities for growth and innovation. 

Moreover, interested companies can take advantage of the initiative's 70% cost-sharing for listing, making it a more accessible option.

Since its launch, the main rule for accredited investors in GEM board has remained unchanged, as the net worth of the investor should be Rs5m.

However, getting listed on GEM board costs is capped at Rs50,000. 

PSEB is dedicated to nurturing the growth of Pakistan's IT industry, as evidenced by its GEM Board listing initiative.

This initiative aims to enhance visibility, access to capital, and regulatory support for IT/ITeS companies in Pakistan. 

A spokesperson from AKD Securities added that fundraising for companies is flexible, as institutional investors and accredited investors are on the board.

Meanwhile, a spokesperson for the PSX stated, “The PSX encourages companies to use the GEM platform as a first step in their growth journey to corporatization as they migrate onto the main board.”

Listing on the PSX GEM Board offers a multitude of advantages. It provides access to public funding, which can accelerate growth and foster innovation within an organization. 

Additionally, it raises the industry's stature, drawing increased investment in the sector and expanding business opportunities.

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