K-Electric Ltd. raised Rs4.4 billion ($15.8 million) from Pakistan’s first retail-listed short-term Sukuk, more than doubling its Rs2 billion target in an initial public offering that drew strong demand from both institutional and individual investors.
The share-sale, which closed Sept. 3, attracted more than 600 applicants, underscoring growing confidence in the Karachi-based utility’s growth plans and the appeal of Islamic finance as a retail-friendly investment channel. Proceeds will be used to fund operational expenses and working capital needs, the company said in a statement.
The Sukuk was structured under Shirkat-ul-Aqd, allowing investors to directly participate in K-Electric’s electricity business. A unique feature allowed residential and commercial customers to offset profits against their power bills.
The IPO opened Aug. 4 for individuals, including the company’s consumers, before being extended to institutional investors on Aug. 18. A separate Rs1 billion pre-IPO tranche targeted industrial users and high-net-worth investors.
“This overwhelming response demonstrates confidence in our vision of powering Karachi and driving Pakistan’s energy transformation,” Chief Financial Officer Muhammad Aamir Ghaziani said.
K-Electric, Pakistan’s only vertically integrated power utility, said the Sukuk marks a milestone in deepening the nation’s Islamic finance market, channeling household savings into productive assets and supporting economic resilience.
