Abstract:
The purpose of this project was to highlight the possible challenges faced by an original equipment manufacturer (OEM) Precision Mates for a prospective issue of listing. We knew it would be erroneous to consider the listing of the company as a less risky or challenge free initiative. In Pakistan, listing is made through a prospectus approved by the Securities and Exchange Commission of Pakistan (SECP) under the Securities Act, 2015. For Precision Mates we performed extensive research and developed an in-depth understanding of all the risks involved of this process and covered the aspect of financial issues, corporate governance and other frameworks. The focus of our project was on the original equipment manufacturers of value adding resellers (VARs) like Suzuki, Honda, Wapda and Haier. As OEMs rely on their ability to drive down the cost of production through the economies of scale, we believed that listing of the company and an eventual IPO would help the company expand its current operations, raise additional capital and establish a trading market for its shares in addition to meeting the financial needs for new projects and ventures. We concluded in our findings that, Precision Mates will have to go through many challenges that are mentioned below. The focus of our project was to cover all these issues described below including book building procedures, framework, corporate governance and other major listing requirements that will be necessary for the company if it aims to go for the process of listing in the future.
