IPO Summit 2016, Lahore How Good Financial Advisory Services Can Contribute to a Successful IPO November 2016

JS Global – Who We Are

Geographical Presence Relationships with Major Foreign Broker Dealers Who we are JS Global Capital Limited (“JS Global”) is the largest Broking and Investment Banking firm in Pakistan with a continued leadership position in the domestic capital markets. Geographical Presence List of Firsts First brokerage firm of PSX to corporatize itself in 1991 First brokerage firm to have a foreign equity house partner in 1993 – Bear Stearns First brokerage firm to be appointed as Primary Dealer by State Bank of Pakistan in 2003 First brokerage firm to introduce book building for new listings in Pakistan in 2008 First brokerage firm to introduce Financial Information Exchange (FIX) in 2009 First brokerage firm to introduce an internationally acclaimed software solution in 2009 First brokerage firm to introduce multi-exchange trading solution in 2013 – PSX & PMEX First brokerage firm to introduce NCS accounts of National Clearing Company in 2015 First brokerage firm to introduce DSS accounts of Central Depository Company in 2015 JS Global has a diverse client base nationwide served through offices in major cities. Abbottabad Peshawar Islamabad Lahore Faisalabad Multan Hyderabad Karachi Relationships with Major Foreign Broker Dealers Recent Recognition Best Trader of the year (2015) 1st Runner-Up, Best Brokerage House (2015) Best Foreign Exchange Brokerage House (2015) Runner-up Best Money Market Brokerage House (2015)

Who we are, …Cont’d. Efforts by JS Global to help Pakistan Re-enter the MSCI EM Index Government of Pakistan, Pakistan Stock Exchange & JS Global in partnership with Renaissance Capital arranged Pakistan Investment Conference (PIC 2016) in London in May 2016 to highlight Pakistan’s evolving business landscape and to strengthen the country’s case for re-inclusion into the MSCI Emerging Markets Index. 14 leading Pakistani companies participated in the PIC 2016 along with some of the leading foreign institutional investors representing 15% of the total global assets under management. JS Global’s efforts paid off as Pakistan was reclassified into the MSCI Emerging Markets Index the next month (June 2016), after a gap of 8 years Ministry of Finance, Government of Pakistan Key Transactions JS Global – A Market Leader Successfully completed 13 IPOs to date Over 16,000 clients Sales team of over 58 traders Over 8% share of total market volumes Handles 20% of all foreign portfolio investment Market leader in fixed income and forex brokerage market First to win the mandates for 4 back-to-back privatisation transactions

Appointing the Right Financial Advisor

Role of Financial Advisors in an IPO Assisting in the post-IPO phase Evaluation of listing eligibility Initial Public Offering Generating Demand Due diligence and valuation Value creation Preparation of prospectus and marketing documents Marketing activities and roadshows Structuring the transaction Coordination with regulatory bodies

Preparing for an IPO Not all businesses are suited to life in the public eye. But for many fast-growing private companies, an IPO can raise the capital they need to accelerate growth and achieve market leadership Begin the IPO readiness process early enough so that your pre-listed company acts and operates like a public company at least a year before the IPO Prepare early The market position of the company is a key factor that determines the success of the IPO. Outperforming competitors is the best way of gaining investor confidence Outperform competitors Consider multiple approaches – including private placement Evaluate options Fine tune business operations, ensure transparency and enhance corporate governance Address investor concerns Although the IPO process takes around 5-6 months, the journey begins at least a year before and continues well beyond it

Importance of Financial Advisor in the IPO Preparatory Phase Assessment of financial information Ensure good corporate governance Restructuring of balance sheet to extract maximum value Ensuring compliance with rules and regulations Advising on the Board structure Identifying the best story the company can present Recommend ways to improve financial performance Advise on IPO timing Help build a positive public image

Importance of a Strong Client Base Multi-Level Engagement Demand Generation The distribution strategy is one of the most critical parts of an IPO. A financial advisor with a strong client base comprising both local and foreign investors would be better able to facilitate price discovery. Participation of foreign investors has been lacking in local IPO; however, a financial advisor with strong relationships would be able to attract significant foreign interest. Importance of a Strong Client Base Multi-Level Engagement HNWIs / Retails Local & Foreign Investors Foreign & Local Asset Management Companies Insurance Companies Commercial Banks Exclusive Corporate Clients Development Financial Institutions Provident Funds Strong Client Base Greater Demand Generation Better Price Discovery

Value Creation Although an IPO leads to dilution in shareholding, a good financial advisor would ensure that the value created from the IPO is significantly higher than the dilution VALUE Positioning Capital structure improvements Growth story Strategic business opportunities Internal improvements Acquisitions & partnerships

Success Stories from around the World “Someone is sitting in the shade today because he planted a tree a long time ago” - Warren Buffet Fertilizer plant set up by Esso in 1968 Today Engro has the country's largest urea plant, 2nd largest dairy company, infrastructure and power projects with revenue of USD 1.2 bn A failing textile business acquired by Warren Buffett in 1962 Transformed into one of the largest conglomerates globally with revenue of USD 210 bn Started in 1970 as a mail-order business by Sir Richard Branson Today one of the leading British conglomerates with businesses across the globe in various sectors with revenue of USD 24 bn Started in 1966 as a polyester firm One of the leading Indian conglomerates having businesses in logistics, power, communication and health among others with revenue of over USD 44 bn. Reliance contributes approx. 20% of India’s total exports

Thank You! Karachi Head Office 6th Floor, Faysal House, Main Shahra-e-Faisal Karachi, Pakistan www.jsgcl.com, www.jsglobalonline.com