In Pakistan, IPO share allotment depends on the offer’s terms and whether you participate as a book-building bidder or a retail applicant. Book building determines a strike price and allocates shares under bidding rules; retail investors apply electronically at the offer price stated in the issue documents. The prospectus and its supplement set the dates, price, application minimum and allotment basis for that IPO.
How the IPO allotment process works
- Read the prospectus and supplement. Check the offer dates, price, minimum application, allotment basis and payment instructions. PSX also advises reviewing the company’s financials, business, purpose of the issue, risk factors, litigation or defaults, and promoter background. See PSX investor guidance.
- Identify your participation route. A book-built offer has a bidding stage for eligible participants, followed by a retail offer under the issue documents. The supplement states the strike price, retail offer price, subscription dates and category-wise breakdown of successful bidders and their allocations. An issuer may set the retail offer price below the strike price. The current rules are in SECP’s Public Offering Regulations, updated August 6, 2025.
- Submit a retail application electronically. Since September 1, 2025, applications by all types of investors must be submitted through e-IPO platforms; physical applications have been discontinued. PSX says you must be registered, and you, your TREC Holder or your bank may file the application during the public subscription period. The e-IPO payment routes described by PSX include 1Link and NIFT. Consult PSX e-IPO instructions and the particular issue’s documents for the applicable platform and steps.
- Wait for the allotment result and settlement. The regulations provide for shares to be allotted and issued to accepted successful applicants, and unsuccessful applicants’ funds to be unblocked or refunded, within five working days after subscription closes, unless SECP specifies a shorter period. PSX describes shares and refunds being credited automatically through e-IPO.
- Set up trading separately if you want to sell or buy after listing. IPO subscription is not the same as exchange trading. PSX advises contacting a TREC Holder or licensed brokerage firm to open an account and trade on the exchange.
How book-building bids are allocated
Eligible participants submit bids during the bidding period within the applicable floor and price limits. At the close, the strike price is determined. Under the current regulations, bids at higher prices receive priority. If shares remain after accommodating qualifying higher-price bids, they are allocated proportionately among bids at the strike price. Bids below the strike price do not qualify. The SECP’s investor guide to IPOs provides general context, while the updated regulations govern the current rules.
The strike price is not necessarily the price retail investors pay: the issuer may set a lower retail offer price, as stated in the issue supplement. Check that supplement for the actual retail price and subscription terms.
Retail allocation and oversubscription
For book-built share offers, current SECP rules allow a maximum of 75% of the offer to be allocated to book building and require at least 25% for retail investors. If retail demand reaches five times but is less than ten times the retail portion, the retail allocation increases by five percentage points. At ten times or greater oversubscription, it increases by ten percentage points, with a corresponding reduction in the book-building allocation. The retail portion must be fully underwritten.
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These are rules for allocating the offer between categories, not a promise that any individual applicant will receive shares. The issue’s published allotment basis determines how retail applications are handled; oversubscription does not mean every applicant receives a fixed percentage.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to check before applying
- Dates and price: Confirm the subscription period, offer price and any strike price in the latest prospectus or supplement.
- Minimum application: Follow the minimum and application instructions stated for that issue.
- Allotment basis: Read how successful applicants and their allocations are determined, including the category-wise details in the supplement.
- Company and offer risks: Review the financials, business, purpose of the offer, risk factors, litigation or defaults, and promoter background.
- Application channel and payment: Use an available e-IPO platform and its stated payment method during the public subscription period.
- After allotment: If you intend to trade once the shares are listed, arrange exchange access through a licensed brokerage firm or TREC Holder.
An allotment only tells you whether shares were allocated under the offer’s rules; it does not predict how the shares will perform after listing.
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