KEL: Update and developments
Three months after the release of NEPRA approved MYT, finding it hard to look for encouraging developments, we update investors regarding: 1) intimation of deadline (June 30th) for lapse of previous intention to acquire (issued August 30th '16), and subsequent re submission of public intention to acquire by Shanghai electric, 2) reaction and recourse sought from the 'averse' decision by NEPRA regarding the MYT, and 3) wider developments on the regulatory front particularly proposed amendments to the NEPRA Act. Assessing the timeline of developments behind KEL's sponsor handover it is clear that takeover price of PkR9.37/sh (6 month volume weighted price as per takeover regulations) is applicable on the current intention to acquire, 17.1% higher than the 6M VWAP on Aug'30th. To affirm, we continue to carry an Under-Review stance on the stock based on the inability to forecast earnings and the absence of clarity on fundamental aspects of the tariff mechanisms such as pass-through costs and allowances.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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