Pak-Qatar General Takaful Limited (PQGTL) has made a strong debut in Pakistan’s capital markets after its initial public offering recorded a 21-times oversubscription in rupee terms at the Pakistan Stock Exchange. The offering, which is the first IPO of 2026, concluded its two-day book-building process on Thursday, reflecting robust investor appetite for takaful and insurance-linked financial services.
According to figures shared by the issue manager, the company attracted bids worth Rs4.74 billion against a minimum target size of Rs225 million during the bidding process held on Wednesday and Thursday. The overwhelming demand underscores growing confidence among institutional and high-net-worth investors in Pakistan’s Islamic insurance segment and the broader financial services sector.
Under the book-building structure, Pak-Qatar General Takaful offered 22.5 million shares to institutional and high-net-worth investors at a floor price of Rs10 per share. Strong participation during the bidding phase pushed the strike price to the upper cap of Rs14 per share, representing a 40% premium over the floor price. The final pricing reflects both the depth of demand and positive sentiment around the company’s growth prospects.
At the final strike price, PQGTL raised Rs420 million through the sale of 30 million shares. Of the total offering, 75% or 22.5 million shares were allocated to institutional and high-net-worth investors through the book-building process. The remaining 25%, equivalent to approximately 7.2 million shares, will be offered to retail investors later this month at the same strike price of Rs14 per share.
In volumetric terms, demand also remained significantly higher than supply. Data available on the Pakistan Stock Exchange bidding screen shows that bids were received for around 338.85 million shares against the 22.5 million shares offered to non-retail investors. This translates into an oversubscription of slightly over 15 times by volume, highlighting broad-based participation across investor categories.
In its IPO prospectus, Pak-Qatar General Takaful outlined that the proceeds from the public offering will be utilised to strengthen its capital base, enhance solvency margins, expand its digital distribution network, and support the development of new and diversified takaful products. The focus on digital channels aligns with wider trends in Pakistan’s financial services sector, where technology-driven distribution and customer engagement are increasingly viewed as key growth drivers.
The company’s paid-up capital currently stands at Rs711.071 million and is set to increase to Rs1.011 billion following the completion of the public offering. This capital enhancement is expected to help the company meet and sustain regulatory requirements for non-life insurers and takaful operators as prescribed by the Securities and Exchange Commission of Pakistan. Stronger capitalization is also likely to provide greater balance sheet flexibility as the company looks to expand its market presence.
The success of PQGTL’s IPO comes at a time when Pakistan’s equity market is showing renewed activity, with investors selectively backing listings linked to financial inclusion, Islamic finance, and technology-enabled services. As the first IPO of 2026, the strong response to Pak-Qatar General Takaful is being viewed as a positive signal for future listings and for the takaful sector’s role within Pakistan’s evolving financial ecosystem.
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