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

1. JS Global – Who We Are

2. 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)

3. 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

4. Appointing the Right Financial Advisor

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Thank You! Karachi Head Office
6th Floor, Faysal House, Main Shahra-e-Faisal
Karachi, Pakistan